Five Ways to Save on Renter’s Insurance Right Now

[jorloff]

Renters Insurance is usually not considered overly expensive for the peace of mind it provides against loss or liability. However, even if you are overpaying a mere twenty dollars a month for your policy isn’t that money better spent on you or your family rather than going to your insurance company’s coffers? If you think so as well, here are five ways you can save on your monthly renter’s insurance premiums right away:

Show that you are a low risk client.
Insurance is all about risk. If you live in a gated community or have a burglar alarm you need to mention this when you talk to your insurance company. Anything that can prove you are a reduced risk will help you reduce renter’s insurance costs so don’t forget about deadbolt locks, fire alarms, fire extinguishers, safety fences around pools, etc. Just a quick note – dogs may be the best burglar deterrent but they will be viewed as a risk by your insurance company.

Pay premiums up front.
If you have the money on hand, see if you can get a discounted rate by paying all of your premiums at once. Letting your insurance company know that you are customer for the long run lets them know you are stable but better yet, lets them earn interest on your premiums much sooner than if you pay monthly. If you can’t get a better rate by paying everything up front then look for a new company.

Go with a higher deductible.
The less you pay out of pocket when needing to file a claim will cost you more when you pay your premiums. To keep premiums lower, settle for a higher deductible. Of course remember that should you need to file a claim, the initial costs come out of your pocket first so don’t up the deductible to one that is higher than you can afford.

Forget the replacement cost – go with actual cash value.
Renter’s insurance usually pays out in one of two ways; either the cost to replace the items lost or the actual cash value of the items. Policies that replace items will be much more expensive than those that pay out the actual cash value. Of course, replacement policies will have a much higher payout.

Don’t over insure.
Insuring $25,000 dollars worth of property will cost less than a policy that covers $50,000. Assess how much coverage you really need and purchase a policy that meets your needs. If you are unsure about how much an item is worth then have it appraised. Or use the Internet to find a true valuation for it.

Of course, none of these tips will work if you don’t go ahead and call your insurance company to let them know about any of these things. They aren’t going to ask you how they can help you save a little extra cash so take the initiative and make that call.

Jeff Orloff writes about Renter’s Insurance tips for http://www.rentersinsurance.org.

[DerrikCFP]

Jeff,

Good suggestions for saving money.

I would be very careful on choosing actual cash value instead of replacement cost, through. I think that for the money, it is indispensable.

Derrik Hubbard
www.thestewardshipsolution.com

[Channing]

Hello Jorloff and everyone.....,
By the Jorloff I have read your article it's awesome, mentioned precisely but, is full of of information about how to Save on Renter’s Insurance with just Five. Thanks for all these.
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