Renters Insurance: Why a Picture Is Worth Thousands of Dollars

renters insurance

One night I came home from work and found my front door ajar, with the handle ripped clean off.

Pushing it aside, I realized robbers had ransacked my apartment. It was a little studio, and though I didn’t have that many valuables, my television and Xbox was gone.

It was scary and upsetting, and I didn’t sleep well for weeks. My one consolation, however, was that I had renters insurance.

But when I filed a claim, I found out that my insurer denied it because I didn’t have photos or receipts of my missing items. Without proof, they wouldn’t cover the costs.

What is renters insurance?

When it comes to renters insurance, a picture is invaluable. Having the right photos and paperwork are essential if you submit a claim for theft or property damage.

Some renters think they don’t need insurance. They assume the landlord will take care of any damage. But that’s not accurate.

Your landlord is only responsible for the structure. Even if your upstairs neighbor has a water heater leak and your stuff gets ruined, your apartment company is not liable.

That’s why renters insurance is so important, and why many complexes require new tenants to have a policy. Insurance helps you recover from theft, fire damage, or other issues that may pop up down the road.

How much is renters insurance?

With renters insurance, you’ll pay a monthly premium based on the amount of coverage you get. Depending on your needs, you might need as little as a few thousand to as much as $100,000 in protection.

Keep in mind that some apartment complexes have minimum coverage and liability requirements. That’s why it’s best to check with your landlord before getting a policy.

A recent study showed that 93 percent of homeowners have insurance, but only 41 percent of renters have a policy.

And yet, renters insurance is relatively cheap. Insurance provider Nationwide estimated that the average cost for renter’s insurance was just $20 a month in 2014.

If you have car insurance, you may be able to bundle your renters insurance and get a discount. Mine costs just $10 a month for coverage with a low deductible because I went through my auto insurance company.

A lot of renters think they don’t need insurance because they believe they don’t have anything valuable.

But when you add up all your belongings, like your laptop, television, clothes, furniture, and other items, the amount to replace everything can be huge.

How to protect your belongings

When you take out a renters insurance policy, there’s more to it than just filling out the initial paperwork.

As I found out the hard way, companies can deny your claim if you cannot prove you owned the items you’ve reported as stolen or damaged.

You can protect yourself and ensure the insurance company reimburses you by following these four steps.

1. Do a walkthrough video

Use your phone or video camera to walk through your whole apartment.

Start at your front door and walk through each room, taking the time to pause at different areas. Open every cabinet and closet door and film the contents.

Not only will the video help prove what you owned, it will also jog your memory later on. After dealing with a crisis like a robbery or a hurricane, it can be difficult to think of all the things you owned that went missing.

This video can be a great reference for reminding you where you had stored stuff, like those golf clubs in the coat closet or that vintage dress stored on a top shelf.

2. Take photos

While a video is helpful, it won’t provide the specifics of what you owned.

Without proof of the quality and year of your items, the insurance company can claim your things were older and lower-quality than they were.

That’s why you should take photos of your valuables, particularly electronics like computers and televisions. Make sure you get the model number and brand and take pictures of them on so you can show that they were in working condition.

If there are any other identifiers, like serial numbers, write them down too.

3. Create a spreadsheet

Whenever you buy a new item, take a picture. Then add its model name, brand, date purchased, and cost to a spreadsheet.

Then, when you file a claim, you won’t have to search online for pricing of past year models. You’ll have what you spent for reference, which will make things easier and ensure you get all the money you deserve.

4. Save it

After making a video and taking plenty of photos, save everything to your iCloud or Google Drive.

That way, if someone steals your phone or computer, you can still access the information on another machine to deal with the insurance company.

Get a policy

When you’re renting, the last thing you want to do is add an extra expense.

But if something happens unexpectedly, you also don’t want to worry about replacing everything you lost. Renters insurance gives you a cost-effective safety net.

If you don’t have insurance, but you’re currently renting, get a policy right away. You can sign up for one online in just a few minutes.

And once you have coverage, follow the above steps to make sure you catalog your belongings. That way, you’ll be protected in case of an emergency and be prepared to deal with it, without going broke.

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LenderRates (APR)Loan Amount 
1 Includes AutoPay discount. Important Disclosures for SoFi.

SoFi Disclosures

  1. Terms and Conditions Apply: SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Finance Lender Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)
  2. Personal Loans: Fixed rates from 5.49% APR to 14.24% APR (with AutoPay). Variable rates from 5.29% APR to 11.44% APR (with AutoPay). SoFi rate ranges are current as of December 1, 2017 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. Interest rates on variable rate loans are capped at 14.95%. Lowest variable rate of 5.29% APR assumes current 1-month LIBOR rate of 1.34% plus 4.20% margin minus 0.25% AutoPay discount. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.

2 Important Disclosures for Citizens Bank.

Citizens Bank Disclosures

  1. Personal Loan Rate Disclosure: Fixed interest rates range from 5.99% – 16.24% (5.99% – 16.24% APR) based on applicable terms and presence of a co-applicant. Lowest rates shown are for eligible applicants, require a 3-year repayment term, and include our Loyalty and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.
  2. Loyalty Discount: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower has a qualifying account in existence with us at the time the borrower has submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, student loans or other personal loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI and VT. This discount will be reflected in the interest rate and Annual Percentage Rate (APR) disclosed in the Truth-In-Lending Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan, and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan.
  3. Automatic Payment Benefit: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their Citizens Bank Personal Loan during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account two or more times within any 12-month period, the borrower will no longer be eligible for this discount.
7.39% - 29.99%$1,000 - $50,000Visit Upstart
5.29% - 14.24%1$5,000 - $100,000Visit SoFi
8.00% - 25.00%$5,000 - $35,000Visit Payoff
5.99% - 16.24%2$5,000 - $50,000Visit Citizens
5.99% - 35.89%$1,000 - $40,000Visit LendingClub
5.25% - 14.24%$2,000 - $50,000Visit Earnest
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