insurance companies · March 24, 2021 0

Cheapest And best renters insurance companies in 2021 in us and 5 Things to Know About Renters Insurance

cheapest and best renters insurance companies in 2021 in us and 5 Things to Know About Renters Insurance

cheapest and best renters insurance companies in 2021 in us and 5 Things to Know About Renters Insurance : Do you have renters insurance or even know what it is? Here are 5 things you need to know about renters insurance policies and why every renter should have one.

According to often cited survey, only about 40 % those who rent their homes have a renters insurance policy. In contract, 96% of homeowners carry insurance. This begs the question why there’s such a discrepancy.

In my opinion, it seems that the reason most people don’t have renters insurance is because they don’t fully understand it or its benefits. With that, here are 5 things you should know about renters insurance policies.

1) The first thing you should know about renters insurance is what types of events and incidents it covers you against.

Most renters insurance policies will protect you from various damages and thefts. This includes losses resulting from wind storms, fires, vandalism, and more. However, some events that aren’t typically covered include floods and earthquakes. That’s why you’ll want to double check the terms of your policy and see if additional coverage may be needed.

2) Something that most people don’t realize about renters insurance is that your items don’t need to be in your home at the time that they’re damaged or stolen in order to be covered.

 

While you might assume that renters insurance policies wouldn’t apply to items you take outside of your home, that actually isn’t the case. In fact, a major misconception about renters insurance is that it’s covering your home when in reality it’s covering all of your items. For me, this aspect of renters insurance is what really makes it worth it as it protects from a vast number of issues and could prevent heartbreaking situations from becoming bank-breaking ones.

So whether your luggage is stolen while you’re on vacation or your laptop gets damaged at the cafe, you can rest easy knowing that your policy will likely reimburse you.

3) Speaking of reimbursement, when you’re purchasing renters insurance, you want to know if your policy pays actual cash value or replacement value on claims.

There are two main types of renters insurance policies: those that pay out actual cash value and those that offer replacement value. While actual cash value policies may be cheaper, this means that your reimbursement will factor in things like depreciation and condition. In other words, you’ll get less cash on your claim.

However replacement value policies will pay out what the claimed items would cost you to purchase new, meaning you won’t have to pony up anything extra. That’s why, if possible, I’d recommend searching for a replacement value renters insurance policy.

4) Now that you have a better idea of how renters insurance works, it should be noted that these policies are fairly affordable when compared to other types of insurance.

Perhaps the most surprising thing about most renters insurance policies is that they don’t cost as much as you might think. According to ValuePenguin, some areas offer basic policies for as little as $10 a month while more storm-prone cities average closer to $20 a month. Obviously these prices can vary depending on a number of factors, but overall they typically present a good value.

5) Finally, as affordable as renters insurance already is, you may be even to save even more on your policy in a few different way.

One popular way of saving on your renters insurance policy is to bundle it with your auto insurance. In most cases, you can save a significant amount by going this route.

Speaking of auto insurance, just your premium may be lower if your car has certain safety and security features, the same is true of some renters insurance policies. Finally, if you to save money now but possible pay more down the road, there’s always the option to select a policy with a larger deductible. Just keep in mind that while this will lead to a lower monthly premium, it does mean you’ll have to pay more out of pocket should you need to file a claim.

We’ve listed the top 10 renters insurance companies below. Follow the links in the companies’ names to read our full reviews. You can also read more about Best Renters Insurance Companies here.

The Best Renters Insurance Companies of 2021

COMPANY

SAMPLE MONTHLY COST

A.M. BEST RATING

LEARN MORE

Lemonade »

4.3 out of 5
$15.42 NR Learn More »
USAA »

4.1 out of 5
N/A A++ See Review »
Erie Insurance »

4.0 out of 5
$11.33 A+ See Review »
State Farm »

4.0 out of 5
$13.75 A++ See Review »
Allstate »

4.0 out of 5
$23.00 A See Review »

Below are the five cheapest renters insurance companies in our ratings. Follow the links in the companies’ names to read our full reviews. You can read more about Cheapest Renters Insurance Companies here.

COMPANY

SAMPLE MONTHLY COST

A.M. BEST RATING

Travelers »

3.7 out of 5

$11.08

A+

Erie Insurance »

4.0 out of 5

$11.33

A+

State Farm »

4.0 out of 5

$13.75

A++

Lemonade »

4.3 out of 5

$15.42

NR

Nationwide »

3.9 out of 5

$16.08

A+