With each passing year, the cost of renters insurance will only go up from here. Therefore, regardless of the amount you pay, we all would like to pay less for renters’ insurance.
How can you reduce the cost of renters insurance? You can follow these tricks to reduce it and start paying less each year:
1. Minimize the Risk of Burglary by Investing in Security
People who live in a rented property are at a higher risk of theft than people who live in their own home. With renters occupying one-third of total housing stock in the United States, they are 50% more likely to experience a break-in than homeowners.
Naturally, you will find yourself paying more for renters insurance. If you want to lower the costs, the addition of security features would do the trick. For instance, you can install a top-rated alarm system, replace old door hinges, upgrade your locks, install window alarms, and more. In addition to this, you can install smoke detectors.
However, in most cases, your home will require smoke detectors throughout the house. If you already have smoke detectors in your rented property, you can invest in a fire extinguisher or install a new sprinkler system. In doing so, you will not lower just your renters insurance, but also your life insurance and health insurance.
2. Bundle Renters Insurance with Other Types of Insurance
You can bundle renters insurance with other types of insurance, such as with auto insurance and homeowners insurance, for instance. If this is your first time looking for renters insurance coverage or it is almost time for you to renew your renters insurance coverage, you can get in touch with your insurance company and ask them if they offer discounts on bundling policies together. Most insurance companies, not all, do offer discounts on multi-policy coverage. If they do, you can save money each month.
3. Modify Your Renters Insurance
You can modify your renters insurance coverage if you are on a tight budget. You can increase your deductible, which is the amount the insurance company expects you to pay before your insurance goes into effect. By increasing your deductible, you will find yourself paying lower premiums each month.
You can also decrease your policy limits to lower the cost of renters insurance. If you are thinking of increasing your deductible, ensure it is a sound decision, meaning that if theft does occur and results in stolen items, you need to be prepared to pay the money before your renters insurance can compensate you. In terms of policy limits, the amount you pay when you file a claim, you need to set an amount that will cover the costs of replacing all your items and possessions.
If you are considering lowering your policy limits to keep your premiums low, make sure that it is just enough to cover all your personal belongings. Otherwise, you will find yourself paying the costs of replacing them.
4. Modify Your Renters Insurance
It is never a good idea to go to a different insurance company other than the one you have now to apply for renters insurance coverage. If you have gotten homeowners insurance and auto insurance from one company, you need to stick to them for all your insurance needs. This will result in lower premiums, as most insurance companies tend to give a discount for choosing them for all your insurance needs.
5. Pay for Renters Insurance Beforehand
Even though doing this does not reduce the cost of renters insurance, it does reduce the burden of paying premium each month. Moreover, by paying in advance, you might get a discount or avoid paying the additional charges that come with paying each month. If you need to, you can cancel the policy anytime and ask for a refund for the portion of the amount you already paid for.
6. You Can Be Claim-Free
If you have never filed a claim, especially in recent years, the insurance company might reduce the cost of renters insurance by giving you a discount. Again, you can check with the insurance company on whether they provide renters with a discount or not for being claim-free.
7. You Can Use Automatic Payment Option
If you cannot afford to pay the entire amount for a year beforehand, you can still earn a discount if you choose to go with the automatic payment option. You can ask your insurance company on whether they offer this or not.
8. Give Up Smoking
Since smoking increasing the chances of fire, insurance companies may increase the premium on renters insurance if you smoke. You can give up smoking for good to receive lower rates on your renters insurance. Quitting smoking with not only lower your renters insurance, but it will also minimize your health insurance premiums.
9. You Can Share the Costs
If other family members or friends live with you in your rented property, you can share the cost of paying for renters insurance each month. Even though some insurance companies may charge extra additional amounts for this, the total expense of this will be lower per person, thus saving you money. However, the only risk in doing this is that the other person living with you may file a claim and this in return, can affect your ability to obtain insurance down the line.
If you are living in a rented property and want to get renters insurance, but would like to reduce the rates you pay each month on having it, you can use some of these tricks to lower its cost.
If you have questions about your renters insurance or would like to see how much you can save when you bundle your policies, feel free to contact us today for a personalized estimate.
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