If you rent, you should protect yourself and your belongings by taking out insurance. Like a homeowner purchases homeowners insurance, you should have renters insurance – and should know a few things before you choose a policy and purchase it.
Every tenant should have a list of what he or she owns and how much he or she realistically thinks it’s worth. This list will help you determine how much insurance you’ll need to purchase, which will affect how much you pay on a monthly basis.
This list has other uses, though. It will also help you determine what is called replacement cost coverage, which gives you compensation for what the item would cost if you purchased it today. It helps you to avoid worrying about figuring out how much your items have depreciated; instead, you get a lump sum payout.
It also helps in the event of theft. Take pictures of your more valuable assets to go with your inventory.
To lower your premium, you can take advantage of several possible discounts.
For example, if you install security alarms (if allowed by your lease), that will typically lower your premium. You can also benefit from discounts given to universities, trade associations, credit unions, and groups like the AARP, military veterans, and law enforcement personnel.
You can also get discounts if you install dead bolt locks from many insurers.
Before you start shopping, make sure you are shopping from a big pool instead of just picking the first insurer you find, as many tenants do.
Create a list of every insurer you can find in the surrounding area and find out how much your policy would cost from the top five or six options. This will help you weed out the overly-expensive options and select the ones that have what you need at a reasonable cost.
Above all, don’t be afraid to ask your landlord about suggestions for renters insurance, in addition to other key issues.
If you want to rent a house in Birmingham, AL and be a part of a thriving community, contact gkhouses.com and call 205.940.6363.
Matthew is the CEO of Evernest. He is a student of the book Good to Great and is passionate about building the best property management company on the planet (and maybe even the universe if Elon Musk will hurry up). You can usually find Matthew at the baseball field with his son, at a dance recital with his daughter, or at his favorite restaurant with his wife, when he’s not in the office. And if you can’t find him in any of those places, it probably means he’s traveling.