Renter’s insurance is often something that is overlooked by most people. A common misconception that dismisses the need for renter’s insurance is that a landlord’s insurance policy will cover losses incurred on the property should something happen. Other people fail to protect themselves with renter’s insurance because they are unaware that such a policy exists.
A while ago, My Life ROI published a post titled All You Need to Know About Renter’s Insurance. This may be just the thing anyone who needs to learn just what renter’s insurance is all about. If you fall into one of the categories mentioned above then this is definitely something you need to check out.
Don’t Drop a Policy Because of Money
Others are aware of what renter’s insurance is and what it can do to protect you, however they still are without a policy because of one thing – money.
There are times when people go through their budget and come to the conclusion that renter’s insurance is just not something they can, or want to, include. Unfortunately, neglecting to protect the belongings you have amassed over the years isn’t the wisest thing to cut from your budget, especially when there are plenty of ways to trim the amount you pay in renter’s insurance premiums.
Negotiating a better price
Some people hate negotiating. We all know someone who pays the sticker price for everything. However, when it comes to insurance it’s time to put those negotiating skills to work, even if you don’t think you have any.
Start by calling your auto insurance carrier to see if they offer renter’s insurance. If they do, ask for a multiple policy discount as just about every company will offer some type of discount for people who carry more than one policy with them. After that, check to see if you can get an even bigger discount if you were to pay a year’s, or even a half a year’s, premium up front.
Once you are able to work down the price with a company you are familiar with, call some others and see if they can do even better. Having something compare against will give you some additional room to negotiate with.
Lower your risk
Auto insurance policies are based in part by where you live because there are areas that are more prone to auto theft and where drivers are more likely to be in a collision. If you live in a low crime area that hasn’t had a natural disaster in years you should be able to lower the cost of your renter’s insurance policy.
Of course, you don’t have control over when a storm will hit but you can do some things to lower your risk in the eyes of your insurance company. Homes and apartments with updated wiring and plumbing are lower risk dwellings. Make sure you inform your insurance company if where you live has recently been updated. You may even be able to negotiate a better premium for newer appliances as well.
Of course if you live in a home that has a security alarm you can also save some money on your premiums. Other discounts may be available for smoke and fire alarms, fire extinguishers, deadbolt locks and other home security devices. The important thing is to let your insurance company know about these things so that you can get the discounts you deserve.
Adjusting your policy
If after talking to your insurance company and trying to see what discounts you are eligible for still hasn’t reduced your premiums to the point where you can keep your policy there is still one more step you can take.
Your premiums are based on a number of things. Included is the amount of insurance you carry, your insurance deductible, and the type of policy you have.
Obviously, if you are insuring $75,000 worth of property you will be paying more than if you only were to insure $35,000 worth of property. It’s a fact that many people buy too much insurance because they overvalue what they own. Have jewelry appraised and go through your belongings to see what you really would need to replace. That sofa in the garage from your first dorm room may not be a necessity.
Once you have trimmed back on how much insurance you need you can also raise your deductible to lower your premium. One word of advice though, don’t raise your deductible to an amount that you can’t afford to meet.
Finally, check your policy to see if you have an actual cash value or replacement cost when it comes to a payout. Replacement cost policies are more expensive because they pay you the amount it takes to go out and replace the items you lost. An actual cash value policy will pay out the replacement cost minus any depreciation so it winds up costing you less in premiums.
Get Started ASAP!
Of course the only way for you to save any money on renter’s insurance is for you to initiate the process. Rarely will you find an insurance company that will call you and tell you that they have found some great ways to save you money. Make a list of every way you feel that supports why you are eligible for a discount and make that call.