Renters Insurance Info

your single source for renters insurance information

  • Increase font size
  • Default font size
  • Decrease font size
Home What is Covered by Renter's Insurance? Tips to lower renters insurance rates while keeping coverage

Tips to lower renters insurance rates while keeping coverage

A majority of renters choose to not carry renters insurance, as found by the Independent Insurance Agents & Brokers of America (IIABA). One of the reasons behind this was the notion that renters insurance rates were too high, and they would be unable to fit the cost into their budget, but these people did not realize that their renters insurance rate could be as low as $.33 - $.66 per day. For this price, should something occur to their personal property or if someone is injured while visiting, the insurance will pay for the items or the renters liability up to the amount set in the policy.

Several myths abound concerning renters insurance rates, coverage, and the need for it. Even if the property is in a low crime area, most policies will also apply to the contents of the renters car. Natural disasters can occur anywhere, resulting in severe loss of property. Even if the event does not directly affect the rental property, the after effects could. For instance, if a renter has an apartment, and a unit in the same building catches on fire, even if his unit is on another floor, the renter could find that his electronic equipment is destroyed from water and smoke damage resulting from the fighting of the fire in another unit. If his property is rendered uninhabitable, renters insurance might cover the cost of temporary relocation. Small monthly renters insurance rate payments can save thousands should the unexpected occur.

There are ways to lower renters insurance rates even more. Increasing the deductible will reduce the monthly premiums. This amount is the price the renter must pay out of pocket before the insurance company will begin to pay. The renter should limit his deductible level to what he can accrue on a moment's notice either from savings or family. Setting the deductible too high (being underinsured) might prevent the renter from being able to pay for lost goods if he cannot afford the initial out of pocket price. A good rule of thumb is to set the deductible to the amount of money available in savings.

Another way to lower the renters insurance rate is to opt for a single annual payment on the premium rather than breaking it up into monthly installments. Some insurance companies charge a fee for the installment paying system, and by choosing the single rate, the total cost for the year might be less than the renters insurance rate paid each month.

A lower level of coverage, such as a basic level pays for the most commonly encountered events which might occur such as liability, fire, and theft. This basic plan is enough for most renters and it is the cheapest. The more events covered by the policy, the higher the renters insurance rate.

Lowering the renters insurance rate is simple and money saving, but not getting coverage can be costly.