How to Get Renters Insurance

You don't expect catastrophes in your life, but you never know when someone may choose to steal your belongings. Likewise, you may suffer loss when a cooking experiment goes horribly awry and sets half the kitchen on fire, causing smoke damage to the rest of your belongings.

Instructions

Difficulty: Moderate

Things You’ll Need:

• Itemized list of your belongings

Make the Right Moves Before You Get Renters Insurance

1. Itemize your belongings, and document each major item with a photograph, keeping these photos in a place where your risk of loss is minimized. This may mean you need to leave copies of the photos with a friend or store the pictures electronically.
2. List the purchase cost of each item and include how much it may cost to replace it.
3. Decide whether you want renters insurance to pay the current value of your belongings (your initial cost minus the amount it depreciated) or whether you want a policy to pay the amount it would cost to replace your belongings.
4. Assess whether you will need to get additional coverage, called a rider or a floater policy, because of specific, high-value jewelry, electronic equipment, stereo equipment, musical instruments, furniture or other items.
5. Determine whether or not you will need additional insurance coverage because you live in an area that is prone to floods, hurricanes, tornadoes, mudslides or other "acts of God."
6. Estimate how much you can afford to pay out of your own pocket if a damaging event, accident, or theft takes place.

Get Renters Insurance

7. Find a reputable insurance company that operates in your state, and ask its representative for a quote.
8. Compare your renters insurance quote with quotes from at least two other insurance companies at NetQuote.com (see Resources below).
9. Check the ratings of your top three companies.
10. Compare insurance company ratings for financial stability and customer service.
11. Decide from which company you want to purchase insurance. Choose a company that has a good rating, an excellent customer-service reputation and competitive pricing. Contact the company's representative to arrange the terms of the policy, including the starting date and payment.

Tips & Warnings

• Ask the insurance representative for a list of acts (burglary, storms or tornadoes) that your policy covers and a list of acts that are not covered by the insurance you purchase. Don't wait until disaster strikes to find that you do not have adequate coverage.