Renters Insurance 101

ooh cameras dying- how's it dying already? okay Hey Wealth Builders! in this video I'm giving you guys a quick crash course on renters insurance so we're gonna go over what it is what it covers where you can find renters insurance and why you should get renters insurance even if it's not required hello once again and welcome back to The Bemused where we are making sense of all things money for young adults just like myself so if you're into that kind of thing please consider subscribing and hitting that notification bell so that you don't ever miss a post so renters insurance what is it so it is essentially what it's called it's insurance that's designed for renters it's a type of homeowner's policy if you want to get technical is called ho4 policy so homeowner's policy type 4 that's renters insurance if you're living somewhere that you do not own renters insurance is for you and that includes renting a room in someone else's home or even if you're not paying rent for your staying maybe you're an exchange student or an au pair you should still consider getting rental insurance and I'll talk more about that in a little bit so what is what does renters insurance cover and I'm actually gonna do this by looking at my own renters policy so you guys can see exactly you know with a real-life example the types of things that renters insurance typically covers so the first thing I have here is personal property coverage so this covers anything that you own literally anything your clothes your furniture the camera that I'm recording with TVs anything like that anything that belongs to you is covered under your personal property so if it's stolen if there's a fire anything like that that costs you to have your property destroyed that is a coverage that will kick in to replace whatever has been lost and also personal property coverage typically covers you anywhere in the world so for example if I'm traveling and you know my suitcase get stolen I can put in a claim for that and there really is no standard limit you really just choose your coverage based on how much things you have and what they're worth so my policy and this policy is actually shared with my roommate our personal property coverage is a limit of twenty thousand dollars so we're cover it up to that amount and then also if you have any like super high ticket items like if you have a really expensive camera just really valuable things maybe an engagement ring or something like that that you want to put special protections and special insurance on you also have the option of listing out what they call valuable articles in your policy and that makes it even more fireproof of something really high ticket like that what missing fortunately or unfortunately I guess I'm not at that level yet so when I get something that expensive I'll let you know the second thing that's listed on a policy is loss of use and so that is essentially like you know if there's a fire there's anything that makes your home uninhabitable or if it's something it needs to be repaired something like that that makes your apartment or whatever you're staying uninhabitable and you have to leave if you get a hotel or something like that in the interim that's where loss of use cases so they will pay up to I think my limit on here is six thousand dollars if something like that were to ever happen if we had to leave the apartment next is personal liability and this is a huge one so typically if you're renting an apartment and your complex requires you to have renter's insurance this is typically the reason why they require you to have renters insurance because they want to make sure that if you destroy something if something happens on the property that's your fault that they're not going to be on the line for it's if you start a fire they're not on the line for it they're gonna be coming to your insurance policy first to try to recoup the money that is gonna cause to you know replace and rebuild their property so most apartment complexes that do require you have renters insurance they will usually mandate that you have like about two to three hundred thousand dollars worth of personal liability insurance my apartment complex that we move to right now is a little extra they require a minimum of five hundred thousand so I actually had to switch policies like switch carriers when I moved here because the carrier I had before it didn't even have options available up to that limit so I had to get a whole new insurance policy so that I was able to have five hundred thousand dollars of personal liability coverage next is medical payments and I'm covered for medical payments up to $1,000 so this would kick in if anybody gets injured while they're inside of your apartment regardless of who's at fault whether it's your fault or their fault if somebody gets injured we have up to a thousand dollars so we can put in a claim for for injury to others while they are in our space and the last provision that our policy has is for fungi mold or bacteria coverage so if we ever develop a mold problem or anything like that that's where that would kick in funny enough I know people right now who are going through a very serious mold issue and so these types of provisions can really come in handy now another aspect of renters insurance that's super important is to know your deductible so the deductible and this is important not just for renters insurance but for just insurance in general so your deductible is the amount of money that you have to essentially forfeit if you make a claim so for example if I put in the claim that you know my clothes all got destroyed and now I need a thousand dollars to replace my wardrobe for example so the insurance company instead of sending me a thousand dollars they'll only send me two seven hundred and fifty dollars because two hundred fifty dollars it's my deductible so that's essentially what you have to come out of pocket with in essence if you make a claim so my deductible on my policy is two hundred and fifty dollars their policies with different deductibles out there I mean for renter's insurance typically a deductible will be anywhere from $100 to $500 it really depends on the policy size to go with some carriers allow you to choose your deductible and that will make your premium either increase or decrease so if you opted to go with a higher deductible most likely your premium is going to be lower then if you were to opt for a lower deductible so Akeiva you might ask if I don't need to have excess insurance then why should I get it anyway and here's why renters insurance is like the cheapest insurance that you could ever buy in comparison to like your auto insurance or other homeowners policies or any other type of you know major insurance that you can get renters insurance is relatively cheap in my old apartment they didn't have a requirement for renters insurance but I still got it anyway so from my policy and everything I just told you guys about my premium for the whole years only one hundred and thirty five dollars and that's pretty standard you can even get it for less than that so renters insurance is a very affordable and honestly you are gonna be so glad you got it in the event that you do need it like you know anything can happen what if there's a fire in your apartment you gotta go like where are you gonna go how are you gonna pay for this hotel to feed yourself to replace all of your things so for such a small cost in the grand scheme of things it is so worth it and going back to what I was saying earlier even if you're just you know living in someone else's house and you know they have their homeowners insurance that's all good and dandy but say for example you know you caused a fire in these people's house their homeowners policy even though they technically can't cover because it's their house because you're at fault you just want to put yourself in a position where you're liable for your negligence or if any of your contents are damaged or missing you know you don't want to have to rely on your landlord to you know make a claim on their policy for your stuff and they probably won't to be honest that's just a big hassle and that's increasing their cost renters insurance to me is just too affordable to pass up and it's a decision I'm pretty sure that you won't regret especially if you end up need to use it okay so I'm convinced now I understand all the benefits of renters insurance and I understand that that's really not a lot of money and I want to get a policy where do I go how do I get it so there's a lot of ways in which you can get a renters insurance policy a lot of people like to start with their auto insurance carrier and that's you know how I got my first renters insurance policy I just you know added it on to my car insurance policy got that little multi-line discount going on even those one day was like seventeen dollars but whatever so that's a good place you can go to start off with how I got my car policy is that I ended up calling triple-a triple-a also has their insurance connects so they can connect you with some good insurance carriers another way is just to you know do your research online I know a lot of people are like really hyped into like lemonade and all these kind of New Age low cost monthly digital companies doing insurance so I mean just do your research and you know find the company that works best for you what I will say to look out for in a good renters insurance company you want to look at history of how claims are handled because just because it's cheap or the best price or the best coverage it doesn't mean that if you need to file a claim it's gonna be the smoothest process trust me I'm the queen of fighting with companies and I don't like doing that so that's one thing you might want to look out for it's their reputation anybody want to give you a hard time if you put in a claim and you don't want to have to deal with that so that's a quick renters insurance 101 if you got value out of this video let me know in the comments below and leave any questions you have down there and I would love to answer them for you before you go make sure to subscribe if you haven't already and hit the notification bell so that you never miss when we post new videos thanks so much for watching and I will see you guys next time