Five important tips for getting the most from Renters’ insurance.

Of all the types of insurance available to consumers, renter’s insurance is probably the most overlooked and underrated.  Like all insurance policies, the buyer must be careful when purchasing and using their policy.  Here are 5 tips to get the most from your policy:

TIP 1

Know your insurer!  Although this sounds like the obvious thing to check, you would be surprised how many people sign on to a renters policy with the first salesperson that sounds sincere.  Make sure that the company that is providing the coverage is not only reputable but also a reliable and prompt claims settler. 

There are many new companies now offering ‘cut rate’ coverage which really means they cut the rate at which they settle your claim!  You can check the performance of any company online with a number of free sponsored consumer groups.  Anything less than a 4 out of 5 rating stay away from no matter how ‘cheap’ the coverage is.

TIP 2

Make sure your renters policy covers the ‘hidden’ damages.  Everyone thinks of fire or theft when they think of loss but things like water damage from a fire in an adjacent apartment or from a flood is not automatically covered!  Check your policy for exclusions like ‘act of god’ or flood plain before you sign the dotted line.  If these things are excluded then find out how to include them if you feel it might be warranted.  It is too late to learn about these exclusions after the tornado has swept through the trailer park.

TIP 3

Be sure the renters policy covers not only the large items such as the flat screen TV and other appliances, but the smaller more expensive items such as family jewelry.  Many policies exclude such items unless they are separately listed in an addendum.  If you have such valuables then make sure the policy will replace them at full value.

TIP 4

Keep a record of both the major and minor items that you would need replaced.  Receipts are best but who keeps every receipt for every item?  Instruction booklets for appliances and electronic equipment are an excellent record of proof of ownership and value.  If you do not have either of these then a simple photograph is most cases would suffice. 

In this age of picture phones you can take photos of most of your items and store them on in your phone memory!  Check with the insurer that these are acceptable before you take the renters policy.  Make sure you keep such records either in a secure place away from your home or in a fireproof box that is unlocked.  Why unlocked?  Nothing is more intriguing to a thief than a locked box.  They just might take the entire box just to be sure, but would never bother with pictures or receipts.

TIP 5

If you are a collector of unusual memorabilia such as trading cards or comic books then you must include such items in a separate addendum to the renter’s policy. It is very important to have both a visual record and an appraisal of the value of such items.  Most insurance companies will add a small additional fee to the renters insurance premium but it is definitely worth it to make sure these collectables are totally covered.

If you follow these 5 simple tips you will be able to sleep well knowing that you are fully covered in the case of any loss you might incur as a renting or leasing tenant.