We reside in a fast-paced world. These days, people are packing up their belongings and relocating to new cities to chase their dreams, and waiting longer to start families. With the culture shifts in the lifestyles of younger generations, more and more people are content being a renter rather than buying homes. More than 43 million American households rent homes, apartments, condos or townhouses, as outlined by research, and many of them don’t have renters insurance. Some forego purchasing policies because they believe their landlords’ coverage will protect their belongings. Spoiler alert: The landlord’s coverage only protects the structure of the building itself, not the tenant’s possessions. Other renters choose not to buy policies because they believe coverage is too pricey or an unnecessary expense. But typically, renters insurance costs $15 a month, according to the National Association of Insurance Commissioners.
Renters Insurance Are You Paying Too Much?
The single lifeLet’s say you were previously living with a roommate, but decided to move out and get your own place. In the event your roommate’s name had never been removed from your policy, you’re likely to be overpaying, since it was likely covering their possessions, too. Whenever a roommate moves out, the very first thing you should do is call your insurance provider. A representative can remove your former roommate’s name from your policy, and help adjust your coverage to safeguard only your belongings.
Maintaining your coverage as-is following the move could mean that you’re still paying to insure your roommate’s expensive flat screen TV, jewelry collection or rare art that decorated his or her bedroom walls – specifically if you purchased a floater policy to protect high-value items.Perform a little spring cleaning
With spring cleaning just around the corner, you may well be inspired to pare down your possessions. If this describes the situation, your contents coverage should be adjusted to reflect your de-cluttered residence. A reduced amount of coverage can often mean lower premium payments. Now could be the perfect time for you to make a home inventory. A home inventory is a list of anything you own, including receipts to document values, photos and video, if available. This list should be stored in a safe and secure spot outside your rented residence, such as a safety deposit box, and will assist you to file an insurance claim quickly and efficiently if disaster strikes.
Movin’ on up
If you purchased renters insurance while living on the lower level of an apartment building and have since moved up to a higher floor, you may be paying more for your policy than is needed. Moving up a couple of stories reduces your risk of filing a theft claim, which can, in turn, lower the amount you have to pay for coverage.
Wiggle room
When you purchase insurance policies, you agree to a certain deductible – the sum you pay toward an insurance claim before your provider swoops in to pay for the remainder of the damage. The higher you put your deductible, the less you pay for premiums, and vice versa. You should never set your deductible more than you’d be comfortable paying in the case of a disaster, simply because it might cause you financial hardships if you don’t have sufficient money in reserves.
Setting a low deductible could mean you’re paying more for your renters coverage than necessary. If you have some wiggle room with your finances, consider a higher deductible to see additional cash in your pocket each year.
Shop ’til you drop
Your premium payments may be higher when you selected the very first insurance quote you received, instead of putting in some time to shop around for a policy.
It’s important to shop around for renters insurance. It’s typically affordable, but different insurance companies offer varying coverage and discount options, which means that it’s essential to compare quotes to find the lowest cost.
Give credit where credit’s due
Finally, if your credit is less than favorable, it could be the reason that your renters insurance payments are higher than other renters’. Insurance carriers often use credit scores to determine the likelihood that you’ll file an insurance claim. The assumption is usually that the higher your credit score, the less likely you’ll be to file a claim as a policyholder, and vice versa.
To help lower your premiums, work to raise your credit score by paying down any debts and making payments promptly. A number of other factors, such as owning a dog, could contribute to higher renters insurance costs, but tackling the issues described above is an excellent way to begin working toward lower payments.