How Long Does It Take to Get Renters Insurance? What You Need to Know
Whenever you are renting a house or apartment, it’s usually mandatory to purchase renters insurance for your home. Renters insurance is not required by law in any state, but your landlord or rental managing company may insist on it. This is because it protects them from having to pay for damage to your belongings in case of fire, theft, and other calamities. It also helps them screen potential tenants.
Ultimately, getting renter’s insurance is a quick and relatively painless process. There are only a few steps involved, and most people can do this in a short amount of time.
Table of Contents
What is Renter’s Insurance?
- Renters insurance protects your personal property in a rented apartment, condo, or home from unexpected circumstances such as theft, a fire, or sewer backup damage. It will pay for lost or damaged possessions while helping to protect you from liability if someone is injured on your property.Personal liability, additional living expenses, additional living costs, loss of use, and guest medical expenses are usually covered under your renter’s insurance up to the limits of your policy.According to the Insurance Information Institute, renters insurance also covers disasters and events that include:
- Smoke
- Fire
- Explosions
- Theft
- Vandalism
- Windstorms
- Lightning
- Water damage from internal sources (i.e., plumbing)
Common exclusions include earthquakes and floods from weather or other external water sources. Though renters insurance might be confusing to a new renter, the typical renter’s insurance coverage is fairly standard from company to company. Moreover, the procedure is usually pretty straightforward.
How Long Does It Take to Get Renters Insurance?
Acquiring renters insurance is a relatively simple and short process. If all the needed data is provided, it can be completed in minutes. Some providers even offer immediate coverage, especially when applying online.
In all cases, you get to choose the effective date when you purchase a policy. Meaning, you get to decide when coverage starts. It could be today, or it could be next month when you move to a new apartment.
Note that some companies will not allow a starting date that is more than two or three months away. In that case, it’s best to wait with the application process until one or two weeks before you actually need coverage.
The Renters Insurance Process
Step 1: Research and Compare Policies
Even though renters insurance is much less complicated than, for example, car insurance or life insurance, there are differences from company to company. For example, you may get a cheap rate but then the coverage isn’t much. Therefore, it’s useful to go online and check rates and coverages before deciding which one to choose.
When researching rates and coverages, the value of your belongings plays a major role. You may only need $15,000 worth of coverage or you could even go with $50,000 coverage. The amount you choose depends on the value of your belongings and how much you have to lose.
Renters insurance also often has liability insurance coverage, which pays for injuries and damage that you accidentally caused to others. That includes legal defense costs if you get sued because of an accident. You choose the amount of liability coverage and can add the extra liability insurance.
Another important point is to check the amount an insurance company will deduct from a claims payment. If you have a $500 deductible, your insurer will pay you $1,500 for a $2,000 claim. The higher the deductible, the lower a renters insurance company will charge you for premiums.
According to Forbes, renters insurance costs an average of $173 a year for a policy with $15,000 of personal property coverage, based on an analysis of top companies. That comes out to around $14 a month for renters insurance. But for basic needs, some companies start renters coverage as low as $5 per month.
Step 2: Application
Once you’re comfortable that you found the right policy and company, you start the application process. Renters insurance companies often let you apply online, and you will need to minimally provide the following details:
- Location and type of residence (apartment versus house)
- Existing damage to the structure (cracks, leaks, broken windows or doors)
- Business use (personal renters policies may not cover commercial activity but will cover a home office)
- Dogs or other pets (there may be limited coverage or increased costs for some pets)
- Previous claims filed.
Required documentation may differ from company to company, but the above cover most of what you will need to provide. Lastly, in addition to concentrating on coverage and rates, it’s also important to look at the quality of customer service and customer reviews. These usually show the reality of that company’s service.
If you already have car insurance and want to tack on your renter’s insurance with that same company, it’s best to call them and get their rates and coverages. Be sure to check if there is a discount or reduced rate based on this bundle so you will get a better price.
Step 3: Approval and Payment
Once you have been approved, you may submit your payment. In most cases, you will be immediately covered, especially when you purchase your insurance online. If not immediately, you will be notified when your policy becomes active.
Step 4: Receiving Your Policy
Most insurance companies will send your policy by email, but it is good practice to get the policy sent through the mail as well. Review the policy and ensure that it reflects the terms and conditions you have chosen, as well as the coverage amount and deductibles.
If everything is okay, there is no need to do anything else. If not, contact your insurer and clarify any changes that were not initially agreed upon. Most companies will make sure to rectify any issues.
Factors That Can Affect the Time It Takes to Get Renters Insurance
Although the purchase process of renters insurance is fast and relatively uncomplicated, there may be some factors that can cause delays in your application. For example, if you have submitted several claims in the past, the insurer may consider you a “risk” and deny your application.
Another factor can be that your landlord prefers a specific insurer. In some cases, companies that manage large apartment communities have partnered with an insurance company and will urge you to purchase their policy. Unless this arrangement is part of your lease, you have the right to refuse coverage from that insurer and purchase your own.
Additionally, another factor that can cause some delays is that your information is incomplete, or you want to add some specific coverages to your renters policy (i.e., pet insurance or liability). In most cases, though, such factors can be quickly resolved.
Lastly, certain states or providers might have specific requirements that could extend the process slightly. It’s worth checking with your prospective insurance company which requirements, if any, apply to your state.
Tips for Getting Renters Insurance Quickly
- First and foremost, having all your information ready and complete is the most important factor for a speedy process.
- Secondly, applying online with a reputable provider is always faster than personal visits or phone calls. In most cases, the application process online is fully automated and ready to receive your information and send you an immediate quote.
- Lastly, you can find tools online that compare insurance rates and coverages and show you the best deals. As said earlier, it’s wise to not just look for the cheapest rates, but also for the quality of customer service and claims processing.
Conclusion
Although renters insurance isn’t mandatory by law, most landlords and rental companies will require you to purchase renters insurance to cover their risks. Purchasing renter’s insurance can typically be obtained rapidly – often within the same day. By choosing the right coverage, rates, and deductibles, you will protect your home at minimal cost.
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