How to Keep Your Renters Insurance Premiums Low

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How to Keep Your Renters Insurance Premiums Low

Staff Writer · Nov 19, 2009

In the majority of cases, a renters insurance premium doesn’t tend to cost a whole lot of money. For many regions of the U.S., personal finance experts estimate standard costs as averaging around $30 a month. However, this always differs according to the amount of household possessions that is being covered, as well as many other factors. Here are some ways to keep your renters insurance coverage costs low.

Find the Right Valuations for Household Possessions

Different renters insurance policies have various ways to value your furniture, appliances and other possessions. Policyholders can choose policies based on a lump-sum value, and even some valuation systems where compensation for items would be based on a per pound value. Other more detailed compensation systems are calculated according to the actual value of specific items. Those taking out the rental insurance policy might choose an actual cash value (ACV) or replacement value basis. They also may be required to keep documents on hand that prove the market value of items that they own. Making the right decisions about the valuations on your renters insurance can help with saving money in your household budget.

Rely on Deductibles

Another way to limit a renters insurance premium is through the reasonable application of a deductible. A deductible amount can be applied to renters insurance, where it lowers the periodic payments that the policy holder has to make. However, always be advised that in the case of a claim, the insurer will require a household to pay out the deductible amount before they start paying on loss of your possessions.

Take Common-Sense Safety Measures-And Tell Your Insurer

One good way to potentially limit renters insurance premiums while cutting down on actual risk is to be practical in buying and installing security devices that help protect your home and avoid claims in the first place. This can be anything from smoke detectors and fire extinguishers for fire damage, to extended lock and security systems and other anti-theft or theft deterrent items to prevent burglaries. But these items may not affect your renters insurance unless you make sure to mention to insurer representatives that you can provide proof of actions that you took to safeguard your home against specific hazards.

Check Out Discounts for Upfront Payments

Just like other insurance companies, the company that issued your rental insurance may give you some dollars off of premiums based on a lump-sum payment up front. If you have the cash on hand, lump-sum payments can help with saving money and time for a busy household.

The above are some general ideas for helping to control the costs of renters insurance as a smaller part of a greater insurance budget. Almost any household in any income bracket has to deal with multiple insurance policies, including homeowners or renters policies, major health insurance, auto insurance and much more. Shaving dollars off of insurance policies can have a large effect on a  household budget in the long run.

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