How to compare renters insurance

What to look for when comparing renters insurance

Don't just look at price when comparing policies. A cheaper renters policy may end up costing you more money in the long run if the coverage limits are lower or a claim is mishandled. Here are some important components to compare when choosing a renters insurance company:

Coverage limits

• Personal property: Estimate the total value of your belongings, using a home inventory checklist, and then make sure your quote's personal property coverage limit is enough to cover all your stuff.
• Personal liability: Your quote's personal liability coverage limit should be enough to cover your assets in case you're responsible for someone else's injuries or damages.
• Loss-of-use: Not all insurers have the same coverage amount for loss of use coverage. Some may use a fixed dollar amount, and others may base it off your personal property coverage limit.

Find out more about how much renters insurance you need.

Deductible amount

Renters insurance deductibles generally range between $250 and $2,500 on personal property claims. Compare the deductible amount for each policy quote. A high deductible may end up voiding a claim for an item lower in value. For instance, if you choose a policy with a $1,000 personal property deductible and your laptop, worth $1,100, is stolen, your payout is only $100.

Additional coverages

If you need optional coverages, such as personal injury coverage or water back-up coverage, compare the additional costs to include them on each quote. These add-on coverages don't automatically come standard with a renters policy. For example, you may want to consider water back-up coverage, because such a back-up could cause damage that your personal property coverage may not cover.

If you need to add a rider to your renters policy for a high-value item that exceeds your policy's coverage limit, such as an engagement ring, make sure your quote includes the cost of separately scheduling the item.

Service

Consider the big picture for each insurer you're reviewing. Find out about their claims process, customer service, and availability. An insurer with 24/7 support may be preferable compared to an insurer with normal business hours. You may also want to check out their ratings from third parties, such as A.M. Best.

Actual cash value vs. replacement cost

A renters policy with actual cash value (ACV) for personal property coverage means that if your belongings are damaged or stolen, your insurer may pay you the depreciated value of the items and not what it would cost to replace them new. Replacement cost policies are typically more expensive than ACV policies; however, they may pay you the full cost to replace the item with no deduction for depreciation.

Learn more about replacement cost vs actual value.

Exclusions

Renters insurers often have policy exclusions. Renters policies typically do not cover certain causes of damage, such as flooding, earthquakes, and some pests.

Some rental insurance companies have exclusions if you run a business at your residence or own a dog with a bite history. The exclusions may not be listed prominently on a quote, so be sure to read the policy details/terms and conditions.

Get affordable renters insurance through Progressive

Progressive offers a variety of discounts that can lower the price of your renters policy. Plus, if you have another policy with Progressive, you can bundle and possibly save even more.

How to get renters insurance with Progressive