5 Tips For Purchasing Renters Insurance

The majority of renters often neglect the importance of purchasing renters insurance and cause themselves to miss out on a number of benefits in the process. While the process of purchasing renters insurance can be confusing, we are here to provide the following tips that will simplify the process immensely.

1. Choose a Lump Sum Payment Plan

We all like to receive discounts when we make major purchases and renters insurance is certainly no different. By agreeing to a yearly lump sum payment plan, we are able to save ourselves a great deal of money over the long haul. Buyers can opt for a monthly payment plan if they so choose, but these plans tend to cost more over the life of the policy.

2. Learn How To File Claims Before Purchasing

When you are purchasing renters insurance, understanding the claims process is pivotal. Otherwise, you are left to navigate a very tangled web once you find yourself in a situation where it is necessary to file a claim. There is no reason why you should allow yourself to fall victim to the common pitfall of learning on the go. Know the numbers that you will have to call, the people who you will be speaking to and the protocol that you will have to follow before making a renters insurance purchase. It is also important to know what information you need to have on hand.

3. Create an Inventory

Renters will typically overvalue or undervalue their possessions, so it is important to create an inventory, so that you can find out the exact value of all of your personal items. Once you've made the list and received valuations, keep it in a place of prominence in the home where it is easily accessible for future usage. If a tragedy takes place, it is next to impossible to remember all of the items you once owned.

4. Purchase Extra Coverage

A garden variety renters insurance plan may not cover all of your most crucial possessions, so it is important to find out more about the necessary coverage for big ticket items like electronics and jewelry. If the insurance provider can only cover your items up to and including a certain amount, it is your responsibility to inquire about added coverage, so that you are not left holding the bag if and when disaster strikes.

5. Know Your Coverage Types

There are a couple of different coverage types to choose from and you will want to know more about each one. Knowing the difference between coverage that is based on Actual Cash Value and Replacement Value is pivotal. Actual cash value takes the items' depreciation into account when rewarding a settlement, while replacement value insurance provides the renter with the amount that it will cost to purchase a brand new replacement today.