Over the course of the pandemic, the price of rent has come up time and again. While some have complained that rent is too high, many others have simply been unable to pay at all. Millions of Americans lost their jobs, and even when jobs became available again, they still had months of back-rent to pay.
Nonetheless, the price of rent has not dropped. With an eviction crisis and landlords struggling to pay their own mortgages, the actual cost to the renter has stayed static. In comparison to the skyrocketing values of homes over the past year, this is at least no trainwreck.
In order to find a way to cut costs even if the price of rent continues to stay static, you may want to look at your renters insurance premium. There are ways to lower your premium.
If you’re wondering about the price of renters insurance, the average cost is $179 per year. This is not an overwhelming amount, but every saving helps.
For those renters who don’t have renters insurance, it is highly advised you do so as soon as possible. Renters insurance covers your possessions. Your landlord’s insurance will not pay out if your possessions are damaged or stolen when living at their place (unless they are at fault).
Furthermore, renters insurance includes personal liability, which is incredibly important if you accidentally cause harm to another human being. Medical bills can easily cost tens or hundreds of thousands of dollars, and you will need insurance to keep you from having to give all you can.
Still, getting the best price on renters insurance is possible without compromising on what it covers. Here are 7 ways you can save money on your renters insurance.
1. Bundle with car insurance
If you own a car, you need to have car insurance. In fact, you may be penalised if you do not get car insurance. Many insurance companies offer bundles with both car and renters insurance, and they are cheaper than getting each individually.
2. Secure your home
One of the biggest threats renters insurance protects you against is theft. Breaking and entering is one of the most common crimes in the US, and many people have been robbed of all their possessions. Renters insurance is priced to reflect the likelihood of theft and damage. As such, the more secure your home is, the cheaper your premiums will be.
Get a consultation from a security company to find out what the best options are for your place. Consider asking your landlord about improving the security. It is in their best interests, as their home is at risk, even if the possessions within do not belong to them.
3. Check your smoke detectors
Your rented home should have smoke detectors. If it does not, you should ask your landlord to install them. They are essential for safety, lowering the chance of there being a fire. Check that they are in order before applying for renters insurance. It is another factor they take into consideration when pricing your premiums.
While you’re at it, check the carbon monoxide detectors as well. They won’t impact the cost of your renters insurance, but they can be lifesaving.
4. Raise your deductible
If you have money in savings and are looking to decrease your monthly costs, asking for a higher deductible is a way to decrease your premiums. Deductibles are the amount you have to pay before your insurance kicks in and approves the rest of the claim.
Of course, if you do not have the money available to pay the deductibles if something happens, this is not a wise course of action. It is relying on nothing going wrong, when life is unpredictable.
5. Check your credit score
In some states, your credit score will impact your renters insurance premiums. The better your credit score is, the lower your premiums will be. Check your credit score and if you have managed your credit well, you will be able to leverage it for the best possible premiums.
6. Ask for discounts
Some insurance companies will provide discounts depending on your career. They discount teachers, police officers, firefighters, doctors, and certain other professions. Retirees may also receive significant discounts on their premiums. At the very least, ask.
7. Automatic payments
Some companies will give you discounts if you set up automatic payments. This reassures them that your premium will be paid in a timely manner. If your automatic payment bounces, they do not lose out – you are simply liable to pay the premium yourself. However, make a plan to cover all your expenses before automatic payments come off. Payments which bounce negatively affect your credit score.
Renters insurance provides crucial coverage to people who are renting homes. It should be a non-negotiable, even if you do not want to spend the extra money each month. Use the above 7 tips to lower your renters insurance as much as possible.
