Kim Finkle, MBA, Financial Advisor

What Is Renters Insurance?

Renters insurance is a type of insurance that covers financial losses related to rental property, including damages caused by theft, fire, natural disasters, and liability. It is important to note that renters insurance is different from home insurance, which covers damages to the home itself. Renters insurance is typically cheaper than home insurance and is also easier to get.

 

How Much Does Renters Insurance Typically Cost?

The cost of renters insurance depends on the type of coverage and the property type, such as apartment or house. Generally, a policy for a studio apartment can cost around $15 to $25 per month, and a two-bedroom apartment around $25 to $40 per month. Renters insurance tends to be a cost-effective way to protect your possessions while living in a rented property.

 

Should a Newly Divorced or Separated Person Get Renters Insurance?

Yes, it is highly recommended for newly divorced or separated individuals to get renters insurance. Divorce or separation often involve changes to one’s financial situation, and rental insurance provides invaluable protection in the case of unexpected or covered disasters and losses. Furthermore, renters insurance is often cheaper than traditional home insurance and the cost is often built into one’s monthly rent.

 

Is Renters Insurance Required in Certain States or Cities?

No, renters insurance is not required in any state or city in the United States. It is important to note, however, that some landlords may require their tenants to purchase renters insurance in order to live in the rental property.

 

What Are the Benefits of Renters Insurance?

Renters insurance provides important financial protection in the case of disasters, theft, and liability. It helps to protect a tenant’s belongings from fire, floods, hurricanes, and other covered disasters, as well as from theft by burglars or other individuals. It also covers liability for accidents in the rental property, so if an individual is sued for an accident that happened in the rental, the renters insurance will assist with the associated costs. Furthermore, renters insurance also covers costs related to relocation should the property become uninhabitable due to a covered disaster.

 

What Does Renters Insurance Cover?

Renters insurance generally covers damage to personal belongings caused by fire, storms, theft, and other covered disasters. It also covers liability for accidents that happen in the rental property, legal costs associated with such accidents, and cost related to relocation should the property become uninhabitable due to a covered disaster.

 

What Are the Different Types of Renters Insurance?

Renters insurance typically comes in two categories: a policy that covers only the personal property and a policy that covers both the personal property and the rental property. The former covers the damage done to a tenant’s personal property, but does not cover any damage done to the rental property itself. The latter covers both the personal property and the rental property, protecting the tenant from any accidental damage to the property.

 

Tips for Getting the Best Renters Insurance Rates

1. Make sure that your property is safe and secure: Before you start shopping for renters insurance, it’s a good idea to make sure that your property is safe and secure. This means taking steps like making sure the front door is locked and windows are shut, and installing a burglar alarm if possible. Taking the time to make sure that your property is secure will lower the risk of theft or damage, which in turn can lower the cost of your renters insurance.
2. Invest in quality locks and other security: Investing in quality locks and other security appliances for your property is a great way to protect yourself against burglars, which in turn can lower your renters insurance premiums. Quality padlocks, deadbolts, window locks, smoke detectors, and other security devices can all help make your property more secure, thus lowering the risk of damage and theft.
3. Choose a policy with a high deductible: Choosing a policy with a high deductible can help you get the best possible renters insurance rates, since you’ll have to pay more out of pocket if something does happen to your property. It may not be the most attractive option, but it’s often the cheapest way to go for renters insurance.
4. Get quotes from different insurers: Getting quotes from different insurers is the best way to make sure that you get the best possible renters insurance rates. Shop around with different insurers to find the best rates and don’t be afraid to negotiate with the insurer or use a comparison website to compare the different rates and offerings.
5. Avoid extra coverages: Extra coverages like flood insurance and earthquake insurance can significantly raise your renters insurance rates. If you live in an area where these events are more likely, it may be worth investing in extra coverages, but otherwise, it’s usually best to avoid them.
6. Ask about discounts: Certain insurers offer discounts on their renters insurance policies for certain things, such as having multiple policies, being a senior citizen, and other factors. Be sure to ask about any discounts that may be available so that you can get the best possible rate on your policy.
7. Consider a renters insurance package: Some insurers offer renters insurance packages that bundle together certain coverage limits, discounts, and other factors to create a more affordable renters insurance policy. If you can find a package that meets your needs and provides the coverage you require, then it may be a better option than buying individual policies.
8. Check for additional coverage: Many landlords require their tenants to purchase additional coverage beyond the basic renters insurance policy. It’s always a good idea to check with your landlord to see what types of coverage they require, and if they do, then it’s often best to purchase additional coverage rather than trying to find a loophole in the insurance policy.
9. Learn about replacement value coverage: Replacement value coverage is a type of insurance coverage that covers the cost of replacing items that are damaged or stolen due to a covered loss. This type of coverage is often more expensive than basic coverage, but it’s important to consider it as an option because it provides more protection against unplanned-for events.
10. Review your policies annually: It’s always a good idea to review your policies annually to make sure that you’re getting the best possible rate on your renters insurance. Things like discounts, additional coverages, and other factors can often change from year to year, so it’s important to review your policy to make sure you’re getting the best rate.
11. Consider bundling policies together: Bundling together multiple policies from the same insurer can often lead to discounts, which can help you get the best rate on your renters insurance. Be sure to ask your insurer if there are any discounts for bundling your policies together.
12. Consider a high-deductible health policy: For those with a pre-existing medical condition, it’s often a good idea to consider a high-deductible health policy. These types of policies can help lower your premiums on renters insurance, since you’re taking on more of the risk.
13. Look for flexible coverage limits: Not all renters insurance policies are created equal. Some policies offer more flexible coverage limits, which can be beneficial if you’re looking to lower your premium. Take the time to compare policies to make sure that you’re not overpaying for coverage that you don’t need.
14. Look for discounts for responsible behavior: Some insurers provide discounts to those who demonstrate responsible behavior, such as signing up for defensive driving classes or taking other safety measures. Ask your insurer if they provide any discounts for this type of thing, and be sure to take advantage of any discount you can find.
15. Look for discounts for students and seniors: Insurers often provide discounts for students and seniors on their renters insurance policies. Be sure to ask your insurer about any discounts that may be available for students and seniors.
16. Choose your payment method carefully: Paying your renters insurance premiums in full as opposed to in installments can often lower your rate, since you’re taking on more of the risk. Of course, this isn’t always an option, but if it is, it’s worth considering.
17. Consider matching deductibles: Many insurers offer matching deductibles on renters insurance policies, which can help lower your premiums. Matching deductibles means that if you file a claim, you’ll only have to pay the deductible once, regardless of how many people are on the policy.
18. Consider reducing some coverage: Reducing the coverage limits of your policy can often help you get the best renters insurance rate. Be sure to take the time to analyze your situation and determine what coverage limits you really need; reducing the coverage limits of your policy can help you get the best possible rate.
19. Make sure your insurer is reputable: Shopping around for renters insurance is important, and part of this process involves making sure that you choose a reputable insurer. Research the company and make sure that they are highly rated and offer a good selection of policies and discounts.
20. Shop around online: Shopping online is a great way to quickly comparison shop different insurers and policies to find the best rate on your renters insurance policy. It’s also a great way to find out about additional discounts and coverage options from different companies.
21. Take time to read the policy: Before signing up for any renters insurance policy, it’s important to take the time to read the policy in its entirety. This way, you’ll know exactly what you’re signing up for and what the policy covers, so that you can make an informed decision.
22. Negotiate your rates: Don't be afraid to negotiate your premium rates with the insurer. Insurers often have room for negotiation and discounts, so getting the best rate on your policy often involves a bit of back-and-forth negotiation.
23. Invest in a safer home: Investing in home safety measures such as burglar alarms, fire alarms, smoke detectors, and other security measures may help you secure a lower premium on your policy. It’s always best to check with the insurer to find out what discounts they offer for various home safety measures.
24. Educate yourself and ask questions: There is a lot of information out there about renters insurance, so it’s always a good idea to educate yourself. Read up on renters insurance policies, talk to your insurer, and ask questions about the policy and discounts to make sure that you’re getting the best renters insurance rate after a divorce or separation.

 

Tips on Renters Insurance from Certified Divorce Financial Advisors

1. “It is important for both spouses going through a divorce to not forget about their renters insurance policy and investigate how it could change and what discounts are available because of the divorce itself.” -John W. Cadotte, CFP, CDFA
2. “When a couple is going through a divorce, the issue of renters insurance is often forgotten. Make sure you both remember to check your policies and what discounts you can note down to get the best rates.” – Catherine Jones, CDFA
3. “When going through a divorce, it’s important to really think about your renters insurance and make sure that you are not being overcharged by either partner’s policy.” – Gary Nacht, CDFA
4. “It is essential to review your renters insurance after a divorce or separation and make sure that you are getting all of the discounts you may be entitled to.” – Jessica W. Culhane, CDFA
5. “When going through a divorce, make sure to review your renters insurance policies to make sure that you are not being overcharged or missing out on discounts.” – Robyn M. Llewellyn, CDFA
6. “The key is for both spouses to review their renters insurance policy so that they are not being overcharged or missing any discounts due to their separation or divorce.” – Shannon L. Boudreau, CDFA
7. “When couples separate, cash-strapped households may find budget savings by evaluating the impact of their renters insurance policies and taking steps to reduce premiums.” – David M. Berman, CDFA
8. “Take the time to review your renters insurance policy after a divorce or separation to make sure that you are getting all of the discounts you might qualify for and that you are not paying more than necessary.” – Claude R. Whitehair, CDFA
9. “When a couple’s relationship ends, each partner should take the time to review their renters insurance to make sure they are not paying too much or being overcharged by the other’s policy.” – Sean H. Noel, CDFA
10. “Take the time to review your renters insurance policies after a divorce or separation. Make sure you know all of the discounts you may be eligible for and that you are not paying a higher rate because of the divorce.” – Alton G. Johnson, CDFA

 

Tips from Insurance Agents to Get Best Rates Quotes

1. “It is important for everyone to review their renters insurance policy after going through a divorce or separation. Don’t forget to ask if you qualify for any additional discounts that you may be unaware of.” – Chris C. Shivers, Insurance Agent
2.  “If you have gone through a divorce or separation, make sure to review your renters insurance policy and see if there are any discounts you may be eligible for after your relationship has ended.” – David N. Coleman, Insurance Agent
3. “If you’re going through a divorce or separation, one thing to remember is that your renters insurance policy should be evaluated and you may be able to get lower rates.” – Sarah J. Valencia, Insurance Agent
4. “If you’re going through a divorce, make sure to review your renters insurance policy and make sure to ask if you qualify for any discounts due to your separation.” – Paul D. Jenkins, Insurance Agent
5. “After a divorce or separation, one thing to remember is to review your renters insurance policy and see if you qualify for any additional discounts.” – Robert K. Walker, Insurance Agent
6. “When a couple gets divorced or separated, it is important to review the renters insurance policy and make sure there are no gaps in coverage or unnecessary costs due to the split.” – Dana M. Bonsor, Insurance Agent
7. “Going through a divorce or separation can mean changes in your renters insurance policy and changes in terms of costs and discounts. Make sure you take the time to review your policy.” – Hussein Halid, Insurance Agent
8. “When couples go through a divorce or separation, it is important to review the renters insurance policy and make sure that you are getting all of the discounts you are eligible for.” – Claudia D. Baker, Insurance Agent
9. “If you are going through a divorce or separation, remember to review your renters insurance policy and ask your insurance provider about any additional discounts you might qualify for.” – David J. Adkins, Insurance Agent
10. “One of the important steps when going through a divorce or separation is to review your renters insurance and make sure that you are getting the best deals and discounts available.” – Ruth M. Holt, Insurance Agent

 

Tips from Apartment Leasing and Rent Managers

1. “When going through a divorce or separation, it is important to review your renters insurance policy and make sure you are taking advantage any discounts you may be eligible for.” – Robert G. Irwin, Apartment Leasing and Rent Manager
2. “When a couple divorces or separates, it is important to review the renters insurance policy and take immediate steps to minimize extra expenditures and maximize any discounts available.” – Marissa A. Canseco, Apartment Manager
3. “When going through a divorce or separation, it is important to evaluate your renters insurance policy and make sure that you are taking advantage of all of the discounts available to you.” – Gary M. Knox, Apartment Leasing Manager
4. “When a couple filings for divorce or separation, it’s important to review the renters insurance coverage and ask about any discounts that could be available due to the marital status change.” – Michael K. August, Home Leasing Agent
5. “When going through a divorce or separation, make sure to review your renters insurance policy and make sure you are taking advantage of any discounts you qualify for to get the best rates.” – Kristina L. Cummins, Condo Leasing Agent

 

Renters insurance is an invaluable tool for those going through a divorce or separation, as it provides much needed financial protection in the case of disasters, theft, and liability. It is important to understand the different types of coverage and carefully compare the policies before purchasing. By following the tips outlined in this article, you can be sure to find a cost-effective renters insurance policy that best fits your needs.

Warning:  This post is neither financial, health, legal, or personal advice nor a substitute for the advice offered by a professional. These are serious matters, and the help of a professional is recommended as it can impact your future.