Compare Renters Insurance Prices Like To Like
If you’d like to compare renters insurance prices, it’s important to make sure that you’re comparing prices for the same thing. In most places this is pretty easy because a renters insurance policy is a renters insurance policy, you just have to make sure the level of coverage is the same. However, things are a bit different with Texas Renters Insurance. That’s because in Texas, underwriters can develop their own policy forms.
The policy form is the actual contract that governs what’s covered and what’s not covered. To make sure you have the same coverage, you need to ask good questions or compare the actual policy forms. Some might include wind coverage, some might not. Some might include coverage for theft from your vehicle, and there may be one out there that does not. Some policy forms might make small changes to the definition of an insured person, or of a covered peril.
In addition, you’ll find the standard HO-4 tenant policy form in the wild with some underwriters. You’ll also find an older standard form called the HO-BT in the wild, as well. There are, overall, very few circumstances where you would want the HO-BT because it limits coverage for a number of things relative to the HO-4 and current policy forms.
Just to be clear, there is one situation where you absolutely want the HO-BT form. That would be if you’re looking for renters insurance in a difficult to place area, or you have a large number of claims, or your credit is making it difficult to place the policy on the voluntary market. In that case, you’d turn to a Fair Plan policy, and those are written on the HO-BT. You’d want that form because it’s better than no one writing the policy at all, which is the entire purpose of a Fair Plan.
You should be able to ask your renters insurance provider what differences there are in their policy contract from the standard HO-4 and they should be able to give you an overview of the same. It may not include every word that’s different, of course, but they can certainly tell you if wind is excluded, or if there are other major gotchas that vary from industry norms.
Compare Renters Insurance On Level Of Service
In addition to comparing policies on coverage versus price, you should know what level of service you can expect for the price. Some providers like Effective Coverage are known for being experts on renters insurance and having the answers you need in real time. You may find that the people at the direct writers don’t have the same level of answers, or the same level of service.
Level of service is important when it comes to claims, as well. Will you be dealing with someone who works for the insurance company, or someone outsourced? Will your adjuster answer the phone in a timely fashion? Speaking of level of service for claims, here’s something crucial to consider when you’re trying to figure out who has the best price on renters insurance.
Do you get replacement cost or actual cash value on personal property? Actual cash value is often much less expensive, but there’s a reason for that. It factors in depreciation. The moment you take a piece of personal property out of the store, it’s worth less than what you paid for it because it’s used. Over time, that depreciation adds up, and it can add up quickly. That two year old computer might be worth half of what you paid for it, in a best case scenario.
But you want to replace it with a new computer, right? Replacement cost coverage means that if you have a covered loss you’ll get enough money to go buy a new item of like kind and quality. That is, after all, exactly what you want. What you don’t want is the amount of money to get someone else’s used, depreciated computer. You might not even be able to find one that’s similar enough.
Speaking of claims, don’t forget to compare based on the deductible. It’s been proven that it’s generally not worth it to increase the deductible to save money on renters insurance. That’s because doing so might save you two or three dollars a month – not much in savings, but it’s a great deal more money to come up with if there’s a loss!
I Tried So Hard, And Got So Far, But In The End…
It doesn’t even matter! Pardon the illusion to a popular song, but it’s true. You can compare renters insurance prices all day long, but what’s important is the coverage and service. Here’s the thing: The average cost of renters insurance in Austin is about fifteen dollars a month.
If it turns out that you’re paying five dollars a month more or less than that average, does that really make any difference at all in your budget or in your life? It’s certainly not enough of a difference to be worth sacrificing quality coverage and service. We understand that when you’re talking about $180 a year or so, it sounds like a significant increase to go to $200 a year. That’s around a dollar and fifty cents per month, though.
Most people wouldn’t want to risk coverage restrictions or accept actual cash value for their personal property just to save a dollar or two a month. What is your property worth to you? Most people would answer “What it costs to replace it.” That sounds like a reasonable answer to us.
To find out more about how to compare renters insurance, or to get covered today, just call (800)892-4308 or click to get covered - whether you need Austin renters insurance quotes online or coverage anywhere else!
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