Steps to Buying Apartment Insurance

Purchasing an Apartment Insurance Policy

With the right approach, purchasing apartment insurance can be a no-hassle process. After completing a few simple steps, you will have the coverage you need to protect the belongings you store in your home and keep you safe from liability lawsuits. In this post, we’ll detail the seven steps you need to take when buying an apartment insurance policy.

1. Make sure your credit is in good shape. It may seem odd to concern yourself with your credit score when purchasing apartment insurance, but most insurers factor in your credit score when setting your premiums. If you have any problems on your credit report, address them before you apply for a policy.
2. Take a home inventory. You can’t begin shopping for a renters insurance policy until you have a good idea of how much coverage you need. The best way to do this is to take a home inventory where you list all of the items in your apartment and estimate how much they’re worth. The average renter has about $30,000 of belongings in his/her apartment, but this can vary considerably.
3. Decide between replacement cost and actual cash value coverage. If you want your apartment insurance policy to reimburse you for what it would cost to replace your possessions new today, then choose replacement cost coverage. If you would like lower premiums and don’t mind a policy that only reimburses you for the value of your possessions less depreciation, consider actual cash value coverage.
4. Evaluate your liability needs. All renters insurance policies include a liability component that will protect your assets from lawsuits. The amount of liability coverage you need will depend on your net worth, or the amount of assets you have. The standard amount of liability coverage is $100,000 for bodily injury and property damage.
5. Contact the state department of insurance. Your state’s insurance department will be able to tell you what insurers are licensed to provide apartment insurance in your area. You can contact the state department of insurance by phone or visit their website. Most insurance departments’ websites also contain valuable information on average premiums and policyholder complaints for various insurers.
6. Get 3-5 quotes on renters coverage. Compare the offers of at least three different apartment insurance companies. Evaluate the policies on cost, coverage quality, and coverage options. Also take into consideration the stability and reputation of the insurer.
7. Purchase your policy. You can purchase an apartment insurance policy online, through an agent, or through an insurance broker. When you purchase your policy, make sure you get copies of your policy and set up a payment schedule. You may be able to pay your premiums on a monthly basis in order to spread out the cost of the policy.