Renters Insurance
Renters insurance is a smart investment to protect yourself against many perils. Even cheap renters insurance can help cover losses that are a result of damage, theft or other causes.As you get older, your coverage needs will change, so it’s important to select a policy that matches where you are in life and the possessions you own. Learn more about choosing the best renters insurance based on your age and how a good policy can save you from financial devastation.
What is renters insurance?
Renters insurance, like other insurance types, will help policyholders with the financial burden that can follow an accident or emergency. Incidences that a policy can cover include the following:
- Flooding
- Fire
- Theft
- Being sued
- Medical bills
The three types of renters insurance coverage include personal property, personal liability and additional living expenses.
Personal property coverage replaces possessions like furniture and clothing. Personal liability covers other people’s belongings as well as the medical bills that you are responsible for if your guests hurt themselves on your property.
If an emergency forces you from your rental, then renters insurance policies with coverage for additional living expenses will pay for hotel bills. However, this type of coverage will not pay for damage to your rental, as this is your landlord’s responsibility.
How Cheap Renters Insurance Can Save You Money
Even cheap renters insurance can save you thousands after an emergency. Renters insurance policies can provide coverage for personal property for increments of $15,000, $25,000, $50,000 and more. Likewise, policies may have personal liability limits of $100,000 to $300,000 or higher.
Renters insurance cost is influenced by:
- Your location. For instance, if you live in an area that is prone to flooding or fires, then your rate will reflect the increased risk.
- The amount you wish to cover. Higher personal property limits will mean more expensive monthly premiums.
- You claim history or the claim history of tenants who have lived at the same property.
Renters insurance can cost between $10 and $20 a month or $120 to $240 annually, which is quite cheap given the payout for tens to hundreds of thousands.
Renters Insurance Quotes by Age
How much renters insurance coverage do you need in your 20s, 30s and older? Policies should match life milestones, such as after getting married or having children. Likewise, you select a type of coverage that best suits the value of your items.
Before calling about renters insurance quotes, estimate how much your belongings are worth.
Best Renters Insurance for Your 20s
If you are on a tight budget in your first rental, then you may think you cannot afford an insurance policy. However, a cheap renters insurance policy can cover the things you do have for almost nothing.
When you are first starting out on your own, you typically do not have many possessions. And, the items you do have usually aren’t worth very much in comparison to what you will own later in life. Therefore, rental insurance quotes may be the cheapest at this point in your life since you only need minimal coverage.
For instance, you may only own the belongings in your bedroom and share, co-own or just use the items in the common living areas with roommates. Your most expensive belongings may include a closet full of clothes, a gaming system and a computer or laptop.
Similarly, renters insurance coverage can protect you if someone gets hurt in your apartment. For example, your policy can cover medical bill costs if your friend trips on a skateboard and breaks his nose. Since your friend becomes injured in your home, he can sue you for the costs directly related.
If you have roommates, then your renters insurance cost will be less than a cup of coffee, as you can split the monthly premium.
Best Renters Insurance for Your 30s
As you get older, you typically accumulate more belongings as well as pricier possessions that are worth more to insure. As such, you may wish to increase your cheap renters insurance to one with coverage that is more comprehensive and has a higher limit.
You may also have children and/or pets that you are responsible for if they cause damage. By means of example, if your child damages your neighbor’s property or your dog bites one of your guests, then your personal liability coverage will pay for damages minus the deductible.
Thus, you should consider adequate coverage. This may be in the middle range, such as $25,000 for personal property and $200,000 in personal liability.
Best Renters Insurance for Your 40s and Older
Again, the older you become, the more renters insurance coverage you will need. If you are now renting a house, then you may have belongings valued around $50,000.
You may consider decreasing your personal liability if you do not have or no longer care for children and pets or have guests over as frequently. However, given how inexpensive coverage is, you may keep a policy with the highest limit to prepare for the worst.
