What is required for renter's insurance?

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Insurance contracts provide financial peace of mind in exchange for premium payments. Renter's insurance protects the contents of your leased property from catastrophe. Some landlords require that renters carry this insurance. The application process requests basic information.

Identification

Renters answer queries related to address, insurance history and personal belongings on the application. Complete an inventory of your valuables before filling out the application. Insurers ask you to value your belongings and agree to a deductible. The deductible is the out-of-pocket amount of money you must pay to replace losses.

Strategy

Build your savings prior to applying for renter's insurance. Strong cash reserves permit you to request higher deductible amounts, which translate into lower premium payments. Review your credit report also because insurers check credit scores to determine risk levels and set premiums.

Considerations

Dense zip codes alongside high-crime areas carry higher insurance costs. Insurers demand compensation for the increased risks of theft, vandalism and fire.

Misconceptions

Renter's insurance covers your personal possessions within the leased space. Landlords are responsible for insuring the building structure.

Risks

Renter's insurance may not cover large lawsuits and medical bills that arise from the accidents of others within your space. Consider umbrella insurance for additional protection.

Source:

Investopedia: Insurance 101 for Renters

NAIC: What you Need to Know About Renter's Insurance

NAIC: Renter's Insurance for College Students

More Information:

Investopedia: The Insurance Industry

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