It is important to protect yourself against the financial devastation that results from a natural disaster or theft, but there are ways to save on your renter’s insurance so protecting yourself doesn’t hurt your bank account. According to Forbes, only 40% of renters in the United States have renter’s insurance policies. Many people believe that their landlord’s policy covers their belongings as well as the home itself, but people too often discover that this is not the case after an event occurs and their items are lost. By following these simple tips, you can save on renter’s insurance and never have to worry about the cost of replacing your belongings.
Use Safety Equipment
Many states and municipalities require that owners include safety items like smoke detectors, sprinklers, and fire extinguishers in their rental properties. Even if these items are not required in your area, it is a good idea to invest in them because doing so will benefit you when it comes time to pay your insurance premium. Insurance companies know that the use of such items can limit the damage caused by a fire, so they allow customers to save on their renter’s insurance policies in order to encourage their use.
Install a Security System
While the aforementioned safety equipment can help reduce fire damage, installing a security system can assist in preventing theft. Considering that a security system can deter a potential burglar from even entering the house, it’s no wonder that insurance companies are big fans of their customers having one. If a thief does make it into your home, then the speed in which your security provider contacts the authorities can mean the difference between having all of your valuables stolen and the criminal being caught in the act. That difference can save your insurance company the expense of replacing your belongings, so they encourage the installation of security systems in order to reduce the quantity and scope of potential claims.
Be Loyal to Your Insurance Company
Many insurance companies reward loyal customers by providing discounts to those who carry multiple policies with them. If you’re looking to save money on your renter’s insurance, start by checking with the company that currently provides your auto insurance. While you may find a less expensive policy with another company, the multiple policy discount offered by your current insurer could be significant enough to make buying a second policy from them more affordable.
Break Your Smoking Habit
Besides providing a long list of health benefits, putting away the cigarettes can actually save you money on your renter’s insurance. Insurers know that thousands of home fires are caused by smokers every year, so they make discounts available for renters who do not use cigarettes or cigars. Quitting smoking is a good idea in general since it can also save you money on other types of insurance, including life and health policies.
Join a Group
Insurance discounts are among the many possible benefits of belonging to s specific group or organization. It is not uncommon for insurance companies to offer discounts for their customers who belong to specific professional organizations, such as firefighters or dentists. Even membership in non-professional groups can result in lower renter’s insurance rates. If you belong to a credit union or perhaps an alumni organization, then your insurance company may apply a discount to your policy.
Pay the Annual Lump Sum
Breaking up your annual insurance premium into twelve monthly payments is certainly convenient and is more affordable in the short term. Paying the entire premium in one lump sum on an annual basis, however, saves you money on your renter’s insurance policy in the long run. Because of the extra work involved in managing customers who pay monthly, insurance companies typically charge a small monthly billing fee in those situations. By paying annually, you can avoid that small fee that adds up over the course of the year.
Take Advantage of the Automatic Payment Option
Not everyone can afford to pay one lump sum for their insurance policy every six or twelve months. For those who must pay monthly, signing up for automatic payments is a good way to still save some money. Through this option, the monthly payments for your insurance policy are withdrawn from your bank account or charged to your credit card on the same day every month. Besides earning you another discount, signing up for automatic payments means that you don’t have to remember to pay your bill every month.
Sign Up For Paperless Billing
Among the many benefits of living in the digital age is no longer needing to receive hard copies of your bills every month. Because of the savings involved in being able to send bills to customers electronically, many insurance companies offer discounts for customers who requests to only receive their bills that way. An added benefit of choosing paperless billing is that you don’t have to deal with filing or shredding the paper bills. Since all of the correspondence is electronic, you can easily file the bills and letters in your email or on your hard drive.
Choose a Higher Deductible
Insurance is only used in the case of an unexpected loss of property, and the deductible is only due when that loss occurs. Some renter’s insurance customers choose to save money on their premiums by selecting a higher deductible to be paid in that scenario. It is important to keep in mind that you will be required to pay that higher deductible as a lump sum should the worse happen, but it could be worth it to hedge your bets that you’ll never have to use the renter’s insurance you purchase.
Lower Your Policy Limits
The cost of any insurance policy is partially determined by the amount of coverage you purchase. Customers should pay close attention to the limits included in the policy. Someone whose possessions could be replaced with only $20,000 should not pay extra money for $30,000 in coverage. If you can cover your potential losses with a lower amount of money, then it is best to choose that option and save money on your renter’s insurance.
The peace of mind that comes with being adequately insured is priceless. The fact remains, however, that everyone is concerned with saving money. While it may be a necessity for you, there are ways that you can save money on your renter’s insurance and still rest easy at night.
Related: Compare Renter’s Insurance Quotes