Most people are well aware of the fact that if they are renting a home, apartment or condo then arenter’s insurance policy will protect your belongings against accidents, theft, fire, vandalism, etc. Some policies will even provide coverage against accidents where you, or a family member, is found liable.
Fortunately, renter’s insurance is rather inexpensive when compared to other types of insurance. However that doesn’t mean that there aren’t ways you can save money when it comes to your policy. Even if you could save fifteen dollars a month on your policy wouldn’t you rather spend that with your family instead of paying it to your insurance company? And who knows, you could even find that you are able to save more each month.
Pay Your Renter Premium Up Front
If you are able to pay your yearly premiums in one lump sum you should be able to get a discounted rate because it lets your insurance company know that you are a long term customer and are committed to staying with them. Usually, this loyalty is rewarded with savings.
If you can’t pay everything up front ask your insurance agent if there are price breaks for quarterly payments instead of month to month premiums.
Evaluate How Much Insurance You Need
We have a tendency to over insure when it comes to our property because either we believe that our stuff is worth more than it really is or we just make a rough estimate on the high side. Do a complete inventory of your possessions and work from there. Odds are your “estimate” will be much higher than the number you come up with after really looking at the value of your belongings.
Lower Your Risk to Lower Your Premiums
Deadbolt locks, fire alarms, gated communities, fire extinguishers and burglar alarms all help lower your risk of suffering a loss so they help keep premiums low. Make sure to check with your insurance agency to see what other things can help lower your risk in their eyes.
Raise Your Renter’s Insurance Deductible
If you are really looking to cut back on insurance costs the easiest way to do so is to go with a higher deductible. Unfortunately this means you will wind up having to pay more out of pocket in the event you have to file a claim but if it is short term savings you are looking for this is the best route.
Choose an Actual Cash Value Policy
There are two types of policies, actual cash value that pays you what your belongings are worth at the time of the claim, and replacement cost, that pays you the cost to replace the items regardless of their value. Obviously the actual cash value will pay far less as things depreciate over time but again, if you are looking for something to lower your premiums immediately this is one way to go.
Jeff Orloff writes to the Renter’s Insurance blog.
Photo Credit: williamcho