If you just moved into a rented apartment or house in Connecticut, the first thing you must do is purchase a good renter’s insurance policy. Renter’s insurance ensures that your personal property and you are safe in case of specific unfortunate events.
However, it can be challenging to choose an insurer when you have so many options out there. Well, to help make your selection easier, we’ve provided some good renters insurers that you can choose to work with. With that said, you can make this process a lot simpler by working with an insurance agency instead.
An agency works with various insurance companies to ensure that you get the best renter’s insurance in CT.
What Is Renter’s Insurance?
Before we discuss some of the best renters insurers, we must discuss what renter’s insurance is in the first place. Renter’s insurance is a type of insurance that protects people living in a rented apartment or house. If you’re not a homeowner, you won’t need insurance for the property – the landlord will take care of that. Instead, as a renter, you’ll need coverage for your personal belongings/property so that you don’t have to deal with extensive costs of repairs in the case of damage or theft. Thus, a renter’s insurance policy typically includes coverage that protects:
- Your belongings inside your home
- Your living arrangements once a loss is covered
A renter’s insurance policy will help cover the costs when you experience a loss that’s covered, such as theft or fire damage, in your rented apartment or house. The amount of coverage included in your insurance policy and the type of loss that occurs in your rented space will determine the amount your policy covers.
A renter’s insurance policy typically includes two types of coverage options. These include:
Replacement Cost Coverage: This option covers the costs of replacing the items that may have been damaged or lost in your rented home.
Actual Cash Value Coverage: This option will reimburse your damaged or lost items’ value at the time the loss or damage occurs.
Who Has the Best Renter’s Insurance?
There are a number of different renter’s insurance companies that offer good coverage at affordable rates. However, there’s usually a tradeoff, meaning that some companies may have some good qualities but may lack in other areas, for example, customer service. Therefore, in that case, it’s best to consult an insurance agency instead. An insurance agency works with various insurance companies, allowing them to find competitive prices for their clients (i.e., you).
What Does Renter’s Insurance Cover?
A renter’s insurance policy covers ‘covered perils,’ i.e., unexpected events that occur in your rented space. These events include a break-in, theft, or a guest’s injury inside your rented space. It may be worth noting that renter’s insurance is also known as tenant insurance. Typically, covered perils include:
- A problem in the plumbing system
- Impact by a vehicle
The following paragraphs include an overview of what renter’s insurance companies cover and don’t cover in their policies.
What a Renter’s Insurance Policy May Cover
Here’s what a renter’s insurance policy typically may cover for people living in rented apartments or houses.
Liability: Your renter’s insurance policy may cover the cost of repairs if you accidentally damagesomeone else’s property within your rented space. For example, if you accidentally break your neighbor’s window or fence, your renter’s insurance may cover the cost of those repairs. This prevents you from having to pay out of pocket. Also, if you’re responsible for accidentally injuring a guest/ visitor in your rented home, your renter’s insurance policy may cover the cost of their medical bills. With that said, every insurance policy has a limit on how much the insurer pays out when you file a claim. So, if the repair costs exceed the limit set by your insurance provider, make sure to get in touch with your insurance agent to review your options.
Personal Property: In the case of theft or damage to your belongings in your rented home, your renter’s insurance policy may cover the cost of repairs or replacement to your belongings. These belongings may include furniture, electronics, clothing, and more. The exact types of covered items will depend on what’s covered in your renter’s insurance policy.
Additional Living Expenses: If your rented space is damaged to such an extent that it’s uninhabitable, your renter’s insurance policy may cover additional costs such as hotel bills or other alternative living arrangements. In addition to that, your renter’s insurance policy may also cover the cost of food while you’re staying in an alternative arrangement.
What a Renter’s Insurance Policy May Not Cover
Here’s what a renter’s insurance policy typically may not cover for people living in rented apartments or houses.
Valuables: A basic renter’s insurance policy is most likely not going to provide coverage for valuables or other expensive collectibles, such as jewelry or art pieces. To ensure that those items are protected under your renter’s insurance policy, you will have to include them in your coverage. This additional coverage is referred to as scheduled personal property coverage. However, doing so is most likely going to increase your insurance rates. If you don’t have a lot of valuables, you don’t need to worry about including coverage for it in your renter’s insurance policy.
Building structure damage: In most cases, a renter’s insurance policy does not provide coverage if there is damage to the building’s (your rented space) structure.
Home business: Renter’s insurance policy won’t typically cover any damages that may incur to your small business in your rented space home. After all, your rental insurance provides coverage for personal property, not business property. Therefore, if the laptop you use for your home business is stolen because of break-in in your rented space, your renter’s insurance will not cover the cost of its replacement. This is because your laptop will be considered as business property. With that said, there are some renter’s insurance companies that provide coverages for home businesses at an additional rate. Check with your insurer to learn more about what coverages your policy includes.
Motor vehicles: A typical renter’s insurance policy doesn’t provide coverage for your motor vehicles, even if it’s within the building property. However, the belongings within your motor vehicle, which are not a part of your vehicle, will be covered in your renter’s insurance policy.
Why Do You Need Renter’s Insurance?
If you’re moving into a rented apartment or house, you will need renter’s insurance if you want to keep yourself and your belongings secure. Your landlord’s insurance policy will only cover the building, not your property inside the rented space. Your landlord won’t be held responsible for your property or your guests who are accidentally injured within your rented space. This is where renter’s insurance comes in.
If you don’t have renter’s insurance, you’ll end up paying a lot of money to cover the costs of all damages to your property in case of an unfortunate event. In 2017, 48.3% of tenants spent 30% or more of their income on rent and utilities. So, if you experience an unfortunate event regarding your home, such as a fire or theft, you may struggle to pay that out of your pocket. You should also consider getting renter’s insurance for your items that aren’t new. This is because you may not be able to find replacements for those items. In that case, your insurer may reimburse you the cost of that item if it cannot be repaired. One of the great things about renter’s insurance is that it’s generally affordable, and it will end up saving you money in the process. Make sure to get in touch with your insurance agent to ask about what coverages your policy includes.
What Factors Affect Renter’s Insurance Rates?
As we have discussed, the rates for insurance will vary among renter’s insurance companies. However, there are some ways that you can negotiate for a reduction in your premium. In order to do that, you must first know what affects the prices of these costs. Here are some factors that affect renter’s insurance rates:
- Neighborhood your rented space is situated in
- Amount of coverage you include in your Renter’s insurance policy
- Deductible you pay for your coverage
- Type of coverage option you select, i.e., replacement cost coverage or actual cash value coverage
- Discount options you are eligible for (for example, bundle discounts )
How Much Personal Property Coverage Should You Get in Your Renter’s Insurance Policy?
You must remember that increasing your personal property coverage in your renter’s insurance policy will increase your insurance rates. Therefore, you should only include coverages that you need. Here’s what you can do to make it easier to determine your coverage.
Create an inventory of all your personal belongings present in your rented space. Estimate the value of each item and make a note of it. After that, select coverages for only those items that are valuable and will cost you a lot to repair or replace.
You may also have to determine if you want replacement cost coverage or actual cash value coverage. If you choose the latter, you must note that the amount you’ll be reimbursed will be the current market value of that item. Therefore, avoid paying for coverage for items that depreciate quickly.
Last Words on Renter’s Insurance Companies
While it’s important to know about some good insurers, it’s even more important to understand what your policy covers, what affects its rates, and why you need insurance in the first place. That is why you
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Pawson Insurance | Legal Disclaimer |
Informational statements regarding insurance coverage are for general description purposes only. These statements do not amend, modify or supplement any insurance policy. Consult the actual policy or your agent for details regarding terms, conditions, coverage, exclusions, products, services and programs which may be available to you. Your eligibility for particular products and services is subject to the final determination of underwriting qualifications and acceptance by the insurance underwriting company providing such products or services. Statements on this website as to policies and coverages provide general information only. This information is not an offer to sell insurance.