The A-Z of Renter's Insurance in the US

There is a constant shift of people in the US. Young aspirants keep shifting their residence in search of better job and life opportunities and the rent market reflects just that! An estimated 43 million renters spend in excess of 535 billion dollars on rent in the US every year! This is a favorable trend for the US economy since not all the renters are US citizens and the inflow from other economies, no matter how small is an added bonus in an era where policies like H1B are being frowned upon.

A study by top realty firm, Zillow found that a majority of the household that opt for renting out their homes do not go for a renter’s insurance. This is alarming for a country that is so obsessed with playing it safe. Renter’s insurance costs as little as $15/month which is affordable for a majority of the population who are able to afford rented homes in the big cities and towns of the US.

Why should I get insured?

Renter’s Insurance covers everything you own for a fraction of the cost! There will be coverage offered on damage to your personal effects during unfortunate natural calamities or man-made incidents. Liability coverage for life is yet another benefit of taking a renter’s insurance. It is always better to be safe than sorry!

An example of what all could be covered:

Deductibles decoded!

As with all insurance policies, there will be a set of deductibles offered by the insurance firms that will reduce the premium you pay. But if there is an unfortunate incident, these deductibles come back and bite you since every deductible will have a catch behind it! The extra coverage you get by not opting for a deductible might save you a few bucks now but could help you save thousands of dollars in the future, in the case of a mishap.

Smaller specifics that are generally overlooked

As long as you are single in a rented space, there will not be much of influence on your premium from third parties. However, if you live with a roommate who happens to own a lot more expensive items than you, then the insurance premium will be higher with no telling benefit for you. This is a minor specific that is often overlooked when sharing accommodation.

Unknown factors influencing your insurance premium

Did you rent a space in the ground or the first floor of a building? You just attracted a higher renter’s insurance premium! Houses on the lower floors are considered to be more prone to damage by the natural elements and also vandal acts like burglary and mob attacks! This is the reason why the homes on higher floors have a premium that is considerably less.

History matters!

Not just any history but the one that involves your credit! Your credit record needs to be impeccable for you to bag the lowest quote for renter’s insurance. A broken credit history or arrears in late payment, deficits all mount up and reflect on your insurance premium quotes. 

A final word of advice…

Shop around, insurance quotes are not fixed. They largely depend on how well you bargain or how well you research and handle the deals that are offered. In a competitive world, Insurance agencies are in need of you so play a little hard to get and make sure that you get a better quote than the best one that has been offered to you.