How to Compare Renters Insurance Quotes for the Best Rate

Aside from the monthly premium, be sure to compare the following: What personal property is covered and up to what dollar amount? Are there any exclusions for coverage of certain events? How much liability coverage is on the policy? Are there any exclusions for the liability coverage?

It’s important to make sure you’re comparing apples to apples. Check to see that all quotes you’re comparing online offer the same types and amounts of coverage, the same deductibles and the same discounts (if applicable) in order to make a fair comparison.

Make sure the level of coverage is the same. If it’s not the same level of coverage, it’s not a fair comparison. Also, make sure you’re comparing the same deductible.

The top things to look for in a renters policy are: personal property coverage, personal liability coverage, loss of use/additional living expenses and medical payments to others. These are four basic must-haves of any renters insurance policy. They should come as one package. However, some companies may make them separate or optional in order to keep costs down.

Also, there are additional options for renters to consider based on their needs and the insurance carrier. For example, if a renter is renting a single-family home, they may ask if the policy covers sewer and drain damage to their personal property. If they have $50,000 in computer equipment, the renter may want to ask about an optional personal article rider for the equipment.

Don't just look at the cost and the coverage. Be sure to research the reviews, customer service and claims process of the companies. Should you ever need to make a claim, you'll want that process to be smooth and easy.

See if you can get the amount of coverage you’ll need. It can be helpful to create a home inventory prior to shopping for renters insurance to understand the things in your apartment that need the most coverage (such as jewelry, art, electronics, furniture, etc.). Additionally, be aware of the things that renters insurance may not cover, such as bedbugs, identity fraud, floods or your roommate's possessions.

Renters should do a little research on the companies they’re considering. J.D. Power and Consumer Reports publish customer satisfaction studies every year, and those offer valuable insight into insurance companies. If customers are generally satisfied with the insurer, their score will be higher and you’ll be more likely to have a good experience if you need to file a claim.

They must look to see if the policy will provide either actual cash value replacement or real replacement cost coverage. There’s a big difference. An actual cash value policy takes into account the deprecation of the personal property, while real replacement cost does not. This is very important, as lower-priced policies tend to be actual cost value policies. Another thing to consider is how a policy matches your lifestyle.

For example, Jane has a set of jet skis. Will the renters insurance policy extend liability coverage to the jet skis? Jack owns a few antiques. Can the policy provide coverage for those pieces? Renters must always make sure their fur babies are covered under the liability coverage of the policy. Renters should also check to see if the policy covers any changes, alterations or additions to the property done by the renter.

The biggest mistake is not making sure that the quotes you’re comparing are truly comparable in their coverage. It can be easy to just look at prices but not read into the types and amount of coverage one provider may offer that another may not.

The biggest mistake I’ve seen, even when people go to my site, is not having enough coverage to replace all of their personal items at once. They don’t have enough coverage for loss of use and additional living expenses for one year of the current market rent rates.

They also add their roommates to the policy. Adding a roommate to a renters policy is like co-signing for a car loan. When any claim is made on the renters policy, it impacts all those named on the renters insurance policy for up to six years, depending on the state. Roommates should get their own renters insurance policy.