Hey everyone, Jason here with another episode of Renters Insurance 101. Today we're diving deep into getting the best value from your renters insurance policy. As someone who's worked in insurance for over 15 years, I'm going to walk you through everything you need to know about coverage amounts, discounts, claims, and dealing with roommate situations.Let's start with determining the right coverage amounts. This is absolutely crucial because you don't want to be overinsured and waste money, but you definitely don't want to be underinsured and left hanging when you need help. First thing you need to do is take a complete inventory of your belongings. I know it sounds tedious, but trust me, it's worth it. Go room by room, take photos or videos, and make a list of everything you own. Don't forget to open drawers and closets - people often forget about clothes and jewelry, which can add up quickly.For electronics, furniture, and other big-ticket items, write down serial numbers and keep receipts if you have them. A good trick I tell my clients is to imagine your apartment turned upside down - everything that would fall out needs to be included in your inventory. Once you've got your list, start assigning realistic replacement values. Remember, we're talking about what it would cost to buy these items new today, not what you paid for them years ago.Now, for personal liability coverage, I typically recommend at least $300,000. This might sound like a lot, but liability claims can get expensive fast. If someone slips and falls in your apartment or your dog bites a visitor, medical bills and legal fees can add up quickly. The difference in premium between $100,000 and $300,000 in liability coverage is usually minimal, so it's worth the extra protection.Let's talk about discounts because who doesn't love saving money? There are several ways to lower your premium that many people don't know about. First, security features are your friend. If your apartment has deadbolts, smoke detectors, carbon monoxide detectors, or a security system, make sure to mention these to your insurance company. Many offer discounts of 5-15% for these safety features.Another great way to save is bundling your renters insurance with other policies, like your auto insurance. I've seen savings of up to 25% for some clients who bundle. Many companies also offer discounts for paying annually instead of monthly, having a good credit score, or being claim-free for several years.Something else to consider is your deductible. While a lower deductible means less out-of-pocket expense if you file a claim, raising your deductible can significantly lower your premium. Just make sure you're comfortable with and can afford whatever deductible you choose.Now, let's tackle the claims process, because this is where a lot of people get confused. The key to a smooth claims process is documentation. Remember that inventory I mentioned earlier? This is where it becomes crucial. If you need to file a claim, having photos, videos, and receipts will make everything much easier.When something happens that might require a claim, first ensure everyone's safety and prevent any further damage if possible. Take photos of the damage immediately and contact your insurance company as soon as you can. Most have 24/7 claims services, and many now offer mobile apps for filing claims.Here's something important that many people don't realize: not every incident needs to be claimed. If the damage is only slightly more than your deductible, it might be better to pay out of pocket. Why? Because filing claims can increase your premium at renewal time and might make it harder to get insurance in the future. I generally suggest only filing claims for significant losses.Let's move on to roommate considerations, which can get complicated. First things first: your renters insurance policy typically only covers your belongings, not your roommate's, unless they're specifically listed on your policy. Some companies allow you to add a roommate to your policy, while others require separate policies.Here's my advice: in most cases, it's better for each roommate to have their own policy. Why? Several reasons. First, if your roommate has a claim, it could affect your insurance history even if it had nothing to do with your stuff. Second, if you split a policy and one roommate moves out, it can create hassles with the policy. Third, if there's ever a dispute between roommates, having separate policies makes it clearer whose coverage applies to what.If you do decide to share a policy with a roommate, make sure you both understand exactly what's covered and how claims would be handled. You'll both need to be listed on the policy, and you should agree in advance how to split the cost and handle any claims deductibles.Here's a pro tip: if you have valuable items like jewelry, electronics, or musical instruments, consider adding scheduled personal property coverage. Standard policies have limits ...
