How much renters insurance costs, like all other types of insurance, depends entirely on what you own and what kind of coverage you plan you buy. Luckily, the policy can be personalized specifically for the you. This allows you to judge which belongings do require insurance and which don’t and allows you to have some control over your renters insurance cost.
The first way to keep renters insurance costs down is by getting quotes from multiple insurance companies. By shopping around you stand a better chance of getting great coverage for a great price.
Another way to keep your renters insurance costs down is to see what discounts are available for students. Some companies offer discounts to full-time students, while others will offer discounts to those who have another insurance policy under them (like car insurance). In addition, renters insurance costs can be kept down by proving to the company that you have a sufficient form of security, such as a security system or a deadbolt.
You can also keep renters insurance costs down by having good credit. Linda Rey of the Rey Insurance Agency in New York says, “The lower the credit score, the lower the insurance score, the higher the premium. The higher your credit score, the higher your insurance score, the lower the premium.”
If you choose a plan that includes replacement cost value on items that are damaged or stolen, you renters insurance costs will probably go up. This is because the insurance company is paying to replace the exact item in question. If you go with a plan that offers actual cash value on items that are stolen or damaged, however, your renters insurance costs will be lower. But remember, items decrease in value over time, so the insurance company will pay you based on what the item is now worth, not how much it will cost you to replace it. It may keep renters insurance costs down now, but you will probably have to spend more money out of pocket to replace your items under an ACV plan.
By taking advantage of deductions and getting quotes from multiple companies, you’ll see it’s not very difficult to keep your renters insurance costs down.