Whether you are currently renting your home or apartment, or if you are getting ready to move, more than likely you will need a renter’s insurance policy. But where to start, there are several options to chose from out there?
Based on our interactions with several insurance companies over the years, we have compiled a list of the top 5 companies based on customer service, coverage, and rates. These companies are in no order.
True or False: I don’t own the home or apartment, so all I need is a policy to cover my belongings; the landlord's policy will cover the dwelling.
The answer: False.
Reality is if you cause damage to the home or apartment you, will be held liable for the damage. If a fire in the kitchen were to occur or a water hose bursts and floods the home, you would be held responsible for the remediation of the damage. The costs associated with something like this range from $30,000 to $50,000, let alone if something more severe happened such as the whole house burning down. You would be on the hook for the full replacement value. YIKES!
Or take it a step farther, what if a guest is injured while visiting you? Adding medical payments on your policy would take care of that. What if a neighbor sues you because your lawn chair hit them in the head on a gusty day? Your insurance will kick in for that too.
So how much coverage should you have?
That is a great question. Check out this article: Renters Insurance: How Much Coverage is Adequate? This article breaks down it all down. Here is a snippet from the article.
“Many of us don't have $30,000, $50,000 or even $500,000 lying around to pay back an insurance company to restore a home in the event of an accident that we were found liable for, let alone, rebuild our lives from a loss. That kind of judgment is life-altering, and we don't want it to happen to any of our valued resident's. We want to protect you and your family. We also recommend $25,000 in displacement cost and another $25,000 in personal belongings coverage. This coverage is up above and beyond the $300,000 liability coverage. A basic policy runs about $9.00 a month on average, and a premium package is $15.00 a month on average, so you are looking at $6.00 a month difference between the two packages. To put that in perspective, that is less than .50 cents a day for solid coverage for you and your family. To put it another way, it's less than a latte a week. The peace of mind is worth it, wouldn't you agree?”
Things to Look For In A Policy
Not all policies are created equal when it comes to coverage. We recommend you ask some precise questions about the following:
1. What is the daily limit for a hotel stay?
2. Do you offer $300K policies?
3. Do you offer Personal belonging coverage?
4. What is your claims process?
Lemonade offers affordable coverage for all residents. Everything is done online making it easy to obtain a policy. You can download an app to your phone to manage your policy, make claims, etc. They offer policies as low as $5.00 a month for basic coverage. A $300,000 policy can be obtained for $11.00 a month. Lemonade promises to pay claims quickly and any money not paid out in claims is given back to the community. How great is that?
The Automobile Club of America, aka AAA, was founded in 1900 by 10 Los Angeles-area businessmen and professionals. Over the decades, AAA has expanded its services to include membership, insurance, travel, discounts, and more to more than 7 million members. You can receive a quote online, call their customer service, or visit a local office. A policy with AAA varies in cost depending on your bundle discount, but the average cost is about $13 a month for a $300,000 policy.
Farmers started in 1928 by two men dreaming of providing quality insurance at a reasonable price. Today Farmer’s services 10 million households and employees nearly 21,000 employees. Offers a full list of coverages included but not limited to car insurance, renter’s insurance, and pet insurance. They even offer accident coverage and identity protection. That’s a lot of coverage under one umbrella. A $300,000 policy runs about $10.00 a month.
State Farm “like a good neighbor, State Farm is there.” State Farm believes in being there for its members not only when things are going bad but when things go perfectly right. State Farm has been serving customers and giving back to the community for nearly 100 years. Currently, State Farm employs nearly 65,000 people. They offer a range of policies include auto, renters, and pet insurance. You can save money on your policy when you combine policies with State Farm. A $300,000 policy averages about $10 a month as well.
Liberty Mutual is located in 17 countries across the globe offering auto insurance, property-casualty, and life insurance under the Liberty Mutual and Safeco brands. They believe in treating individuals with dignity and respect, as well as, operating their business with integrity. They offer bundle coverage for renters and auto insurance, and the average policy runs about $13 a month.
Regardless of which company you go with, one thing is for sure, having a renter’s insurance policy in place is important to protect you and your family if disaster does strike. At Management One, we care about you and your family and protecting them from accidents and financial harm. Call us today if you have questions about your renter’s insurance coverage.