Skip to main content

How to Compare Renters Insurance Coverage

An Angora cat and its owner chilling on a couch while the owner searches for renter's insurance.

So, you’ve decided to insure your rental unit. Chances are, you want the best renters insurance at the lowest price. You’re probably wondering how to compare renters insurance. The best way to begin is by understanding the different types of coverage, then choosing the best option.

What is Renters Insurance?

Renters insurance can protect you from financial losses incurred from damaged items, injuries, or natural disasters within a rented space. Renters insurance is available to persons renting or subletting an apartment, studio, single family home, condo, duplex, loft, or townhome.

Who Needs Renters Insurance?

Before you begin comparing renters insurance, you may be wondering if you actually need it. In short, anyone who doesn’t own the place he or she is living in should get renters insurance. Don’t buy into the myth that you should only get renters insurance if you’re in an apartment. At first glance, it may seem like “apartment insurance.” However, this label simply doesn’t fit the description for renters insurance. Reason being, renters insurance covers a range of different users. If you’re an active duty military member, an adult living at home with Mom and Dad, or if you’re in another situation where you don’t own the residence you’re living in, you should consider getting covered with renters insurance right away.

How Much Does Renters Insurance Cost?

Once you start comparing options, you may wonder “How much is renters insurance?” The cost depends on what type of coverage you choose. The three different types include personal property, personal liability, and additional living expenses.

Personal Property Coverage

If you’re looking to protect your belongings (e.g. clothes, furniture, household appliances, electronics, etc.), you’ll want personal property coverage. Anything could happen to your possessions at any time. Personal property coverage could ensure your valuable items get replaced after an incident. This could come in handy should your belongings get stolen in a robbery, get damaged from rough weather, or get destroyed completely due to a natural disaster. Also note that as you compare renters insurance rates and personal property coverage, you have two options to choose from:

1. Actual cash value
Actual cash value coverage allows your insurance company to pay you the current value of the stolen/damaged item.

2. Replacement cost
Replacement cost coverage allows your insurance company to pay you what the stolen/damaged item is worth at its brand-new value.

Personal Liability Coverage

Let’s say you or someone you live with gets hurt at home or your home gets damaged due to a natural disaster. You’ll want renters liability insurance at the time of the incident. Depending on your provider’s policies, this type of coverage will provide you with covered costs for expensive medical bills and/or high-priced repairs to your rented residence.

Additional Living Expenses

Suppose a disaster hits your apartment and you can’t live in your rented space due to damages. You’ll need a temporary housing situation (such as a hotel) and you’ll want additional living expenses coverage to help you deal with the costs. Loss of use coverage is another common name for additional living expenses. This coverage could give you much-needed relief while your place gets repaired or as you look for a new place.

How to Compare Renters Insurance

The best way to compare renters insurance is to look over multiple policies and choose the one that best fits with your coverage needs. Comparing policies includes checking different payment procedures and choosing the one that’s right for you. For example, if you know you want to pay little to nothing if/when you need to replace your place of residence or belongings, you’ll want to pay for a policy that offers that type of coverage. Deciding on policies like this means deciding how much you’re willing to pay for your premium, monthly rate, and deductible. Make sure the policy you choose is also in line with what you’re willing to spend. Lastly, you’ll want a knowledgeable agent there to guide you through the policy agreements and contracts. This will help you to know exactly what you’re getting in coverage.

We can answer your questions about renters insurance cost, options, and policies. At Freeway Insurance, we’ll compare cheap renters insurance that has the coverage you’re looking for. Get free renters insurance quotes right now, online or over the phone at (800) 777-5620.

Ready to Get a Quick Quote?