1. Why is it important to get renters insurance and do you feel that renters insurance is something that is overlooked by many people?
A recent poll showed that while 98% of homeowners have homeowners insurance, only 40% of renters have renters insurance. There are a great number of misconceptions around renters insurance. One of the biggest is the cost; renters insurance costs $15-$25/month on average so it is quite affordable compared to the amount of protection you get. The major benefits of renters insurance are:
Personal Property Coverage – This protects your belongings from theft, loss, fire and other forms of destruction. This protection applies anywhere in the world, not just inside your apartment.
Personal Liability Coverage – This protects you from lawsuits should anyone be hurt in your apartment or should you damage someone else’s property.
Medical Coverage – This covers medical expenses if someone is injured in your apartment, regardless of whose fault it may be.
Loss of Use Coverage – This pays for living expenses (like hotel and food) if you are unable to live in your apartment.
2. What specifics should someone look for in a renters insurance policy?
The largest determinants of price for a renters insurance policy are the amount of coverage to get and the amount of the deductible. We advise people to buy enough personal property coverage to cover all there belongings should they lose it all in a catastrophe. For liability protection, renters should look to buy at least enough coverage to cover all of their assets. Deductible is the amount of loss you pay out of pocket before the insurance coverage kicks in, so this is dependent on the policy holders comfort level and budget. Finally, all of our policies come with replacement cost, which is something we recommend. Replacement cost pays you the amount to buy your possessions over again when you make a claim. The alternative is “actual cash value” which subjects the value of your assets to depreciation.
3. What was the mindset behind starting Bungalow Insurance?
We started Bungalow because as renters insurance customers, we hated the process of buying insurance online. It was confusing and time-consuming and we kept getting spam from insurance agents (or even worse, phone calls). So we started Bungalow to fix all of that! Our website is easy to use, we don’t spam you, and we make it as fast and easy as possible to get the coverage you need. We created Bungalow to be the insurance company we wish we had ourselves.
4. What separates Bungalow Insurance from other companies that offer renters insurance?
We have focused on innovating at the user experience level. We made our website modern and mobile-friendly to reduce the frictions involved in the traditional insurance buying process. A standard Bungalow sale happens in 5 minutes with zero phone calls and no waiting.
5. Each area you insure is different, but how do your rates compare to other insurance companies?
We are currently live in 10 states: California, Illinois, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, Texas, Virginia and Washington DC. Our rates are competitive with other renters insurance policies. Many factors go into the premiums so it’s hard to make broad, overarching statements.
6. How do you compete with the “Big Box” insurance companies that offer discounts if you bundle renters insurance with other policies you already have with them?
Our focus right now is on renters insurance. Since there are so many uninsured renters, we have not really competed with multi-line carriers who bundle.
7. Your website has a lot of information geared towards millennials, is that the main demographic Bungalow Insurance is focusing on?
We do not discriminate on who we insure, but our messaging has been geared towards millennials since a higher percentage of them are renters.
8. Is Bungalow Insurance completely web based or will you have agent based representatives with offices like the “Big Box” insurance companies?
We are completely web-based (with phone sales/support should anyone need it), and we do not plan on having any local agents.
If people want to learn more about renters insurance, they should check out our Guide to the Best Renters Insurance.
If people are ready to shop for renters insurance, we can give them a quote online in as little as 60 seconds.