Renters Insurance 101 - YouTube

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