By Shannon Ireland
We live in a fast-paced world. These days, people are packing up their belongings and moving to new cities to chase their dreams, and waiting longer to start families. With the culture shifts in the lifestyles of younger generations, more people are renting space rather than buying homes.
More than 43 million American households rent homes, apartments, condos or townhomes, according to Zillow research, and many of them don't have renters insurance.
Some forego purchasing policies because they believe their landlords' coverage will protect their belongings. Spoiler alert: The landlord’s coverage only protects the structure of the building itself, not the tenant's possessions.
Other renters choose not to buy policies because they believe coverage is too pricey or an unnecessary expense. But on average, renters insurance costs $15 a month, according to the National Association of Insurance Commissioners.
If your renters insurance payment exceeds the average, it could be because of a few factors. The following are some potential reasons, as well as advice for lowering the cost of your coverage.
The single life
Let's say you were previously living with a roommate, but decided to move out and get your own place. If your roommate's name was never removed from your policy, you could be overpaying, as it was likely covering their possessions, too.
When a roommate moves out, the first thing you should do is call your insurance provider. An agent can remove your former roommate's name from your policy, and help adjust your coverage to protect only your belongings.
Keeping your coverage as-is after the move could mean that you're still paying to insure your roommate's expensive flat screen TV, jewelry collection or rare art that decorated his or her bedroom walls - especially if you purchased a floater policy to protect high-value items.
Do a little spring cleaning
With spring cleaning just around the corner, you may be inspired to pare down your possessions. If this is the case, your contents coverage needs to be adjusted to reflect your decluttered residence. A reduced amount of coverage could mean lower premium payments.
Now is the perfect time for you to make a home inventory. A home inventory is a list of everything you own, including receipts to document values, photos and video, if available. This list should be kept in a safe spot outside your rented residence, such as a safety deposit box, and can help you file a claim quickly and efficiently if disaster strikes.
Movin' on up
Did you know that living on the ground floor of an apartment complex could result in your renters insurance costs being higher than your upstairs neighbor’s? It's true. Being on the ground or first floor of a complex puts your space at a higher risk of being targeted by burglars.
If you purchased renters insurance while living on the lower level of an apartment building and have since moved up to a higher floor, you may be paying more for your policy than is necessary. Moving up a few stories reduces your risk of filing a theft claim, which can, in turn, reduce the amount you pay for coverage.
Wiggle room
When you purchase insurance policies, you agree to a certain deductible - the amount you pay toward a claim before your provider swoops in to pay for the remainder of the damage.
The higher you set your deductible, the less you pay for premiums, and vice versa. You should never set your deductible higher than you'd be comfortable paying in the event of a disaster, because doing so could cause you financial hardships if you don’t have plenty of cash in reserves.
Setting a low deductible could mean you're paying more for your renters coverage than necessary. If you have some wiggle room with your finances, consider a higher deductible to see more cash in your pocket each year.
Shop ’til you drop
Your premium payments may be higher if you went with the first insurance quote you received, rather than putting in the time to shop around for a policy.
It's imperative to comparison shop for renters insurance. It's typically affordable, but different insurance companies offer varying coverage and discount options, meaning that you must compare quotes to find the lowest cost.
Give credit where credit's due
Finally, if your credit is less than favorable, it could be the reason that your renters insurance payments are higher than other renters’.
Insurance carriers often use credit scores to determine the likelihood that you'll file a claim. The assumption is that the higher your credit score, the less likely you’ll be to file a claim as a policyholder, and vice versa.
To help lower your premiums, work to raise your credit score by paying down any debts and making payments on time.
Many other factors, such as owning a dog, could contribute to higher renters insurance costs, but tackling the issues described above is a great way to start working toward lower payments.
Related:
- Safety Upgrades That Save You Money on Renters Insurance
- How to File a Renters Insurance Claim Without the Headache
- The Inside Scoop on Renters Insurance and Roommates
Note: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinion or position of Zillow.
from Zillow Porchlight | Real Estate News, Advice and Inspiration http://www.zillow.com/blog/renters-insurance-too-high-193182/
via Reveeo
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