Renters Insurance Coverage: Save Money with These Tips
Renting an apartment or a house comes with its own set of responsibilities and considerations. While your landlord's insurance covers the building itself, it doesn't protect your personal belongings or offer liability coverage in case of accidents. That's where renters insurance steps in, providing crucial financial protection for renters at a surprisingly affordable cost.
Save Money on Renters Insurance Policy
While renters insurance is generally affordable, every penny counts. Beyond simply comparing quotes, there are several savvy strategies you can employ to further reduce your premiums and maximize your savings.
1. Bundle Your Policies:
If you also have auto insurance, consider bundling it with your renters insurance from the same provider. Many insurance companies offer attractive discounts for bundling multiple policies, allowing you to save on both. It's a win-win situation – streamlined billing and reduced costs.
2. Increase Your Deductible:
Your deductible is the amount you pay out-of-pocket before your insurance coverage kicks in. Opting for a higher deductible can significantly lower your monthly premium. However, it's crucial to strike a balance. Make sure you can comfortably afford the deductible in case you need to file a claim.
3. Install Security Devices:
Many insurance companies offer discounts for renters who take proactive steps to protect their apartments. Installing security devices like smoke detectors, burglar alarms, and even smart home security systems like Kangaroo can demonstrate your commitment to safety and potentially earn you a discount on your premium.
4. Maintain a Good Credit History:
In most states, your credit history can influence your insurance premium. Maintaining a good credit score demonstrates financial responsibility and can lead to lower insurance rates.
5. Ask About Discounts:
Don't hesitate to inquire about additional discounts that may be available. Some insurers offer discounts for:
Non-smokers
Seniors
Students with good grades
Occupations (e.g., teachers, nurses, etc.)
Loyalty (staying with the same insurer for a certain period)
Claims-free history
6. Review Your Coverage Regularly:
As your life changes, so do your insurance needs. Periodically review your renters insurance policy to ensure it still provides adequate coverage for your personal property and liability. You may need to adjust your coverage limits if you acquire new valuable items or if your living situation changes.
7. Understand Your Policy:
Take the time to thoroughly read and understand your renters insurance policy. Pay attention to coverage limits, exclusions, and any special endorsements you may need for specific items like jewelry or electronics. If you have any questions, don't hesitate to contact your insurance agent or the insurance company directly.
8. Consider Additional Coverage Options:
While standard renters insurance covers a wide range of perils, you may want to consider additional coverage options for specific needs. These could include:
Flood insurance: If you live in a flood-prone area, consider purchasing flood insurance to protect your belongings from flood damage.
Earthquake insurance: If you live in an earthquake-prone area, consider adding earthquake insurance to your policy.
Scheduled personal property coverage: This provides additional coverage for high-value items like jewelry, art, or collectibles that may exceed the limits of your standard personal property coverage.
Identity theft protection: Some insurers offer identity theft protection as an add-on to your renters insurance policy.
9. Choose the Right Insurance Provider:
Not all insurance companies are created equal. It's essential to choose a reputable insurer with a strong financial rating and excellent customer service. Research different companies, read reviews, and compare quotes to find the best fit for your needs.
10. Work with an Insurance Agent:
An insurance agent can be a valuable resource in helping you understand your coverage options, find the best renters insurance for your needs, and navigate the claims process if necessary. Consider working with an independent agent who can compare quotes from multiple insurers to find you the best deal.
Kangaroo: Your Partner in Apartment Security and Savings
Kangaroo offers affordable and easy-to-install home security solutions that are perfect for renters. Their range of devices, including motion sensors, door/window sensors, and indoor and outdoor cameras, can help deter theft and provide valuable evidence in case of a break-in.
Kangaroo Protect Plans: Added Benefits
Cam Protect: Safeguard your Kangaroo devices with theft and damage coverage, plus unlock premium features like Person Detection and Full Event Capture. Reimburse up to $250 annually
Complete Protect: Enjoy comprehensive whole-home coverage, including 24/7 professional monitoring and up to $1000 of theft and damage reimbursement (up to 2 claims per year, max $500 per claim, covers fire, water, or smoke damage).
Dory: Your Insurance Discount Assistant
Kangaroo's Dory service can help you maximize your renters insurance discounts. By analyzing your current policy and identifying potential savings opportunities, Dory can help you save up to 20% annually on your premiums.
Hear from Satisfied Dory Users
"Kangaroo saved us $131 and did all the leg work for me! Thanks!" - Rachael, Dory Verified Customer
"Super easy and super helpful." - Patricia, Dory Verified Customer
"Thanks for letting me know I was eligible for the discount." - Robert, Dory Verified Customer
"Wow! I just answered a few questions and now I’m saving an additional $64! Simple, Fast & easy!" - Jeff, Dory Verified Customer
"The Kangaroo specialist was so helpful, accommodating and very informative on our issue and helped us to get a discount on our insurance that we didn't even know existed, thank you" - Leo, Dory Verified Customer
"I didn’t even know this was possible until I contacted kangaroo and I was offered! They contacted my insurance company and was able to save me 10% overall." - Spree, Dory Verified Customer
Renters Insurance by the Numbers
| Statistic | Value |
|---|---|
| Percentage of renters with insurance (2014) | 37% |
| Decrease in average premium (2017) | 2.7% |
| Average annual premium in the U.S. (2017) | $180 |
| Lowest average annual premium (North Dakota, 2017) | $120 |
| Common deductible amount | $500 |
| Percentage of renters under 30 (2017) | 50% |
(statistics c/o Policygenius)
This table provides a concise overview of key renters insurance statistics, highlighting its affordability and the potential for savings. It also emphasizes the importance of considering this coverage, especially for younger renters who make up a significant portion of the rental population.
What does Renters Insurance Cover?
Renters insurance is a type of insurance policy that provides coverage for a renter's personal property and liability. It typically includes:
Personal Property Coverage: This covers your belongings inside the rented dwelling against perils like theft, fire, vandalism, and certain types of water damage.
Liability Coverage: This protects you financially if someone is injured in your rented space and you're held responsible. It can cover medical expenses, legal fees, and other costs associated with the incident.
Additional Living Expenses (ALE) Coverage: If your rental becomes uninhabitable due to a covered peril, ALE helps cover temporary living costs like hotel stays and meals.
Average Renters Insurance Costs by State: Annual and Monthly Breakdown
These averages are based on general figures and can vary based on factors like coverage level, location within the state, and personal factors like credit scores.
| State | Average Annual Cost | Average Monthly Cost |
|---|---|---|
| Alabama | $235 | $20 |
| Alaska | $168 | $14 |
| Arizona | $194 | $16 |
| Arkansas | $220 | $18 |
| California | $180 | $15 |
| Colorado | $165 | $14 |
| Connecticut | $180 | $15 |
| Delaware | $170 | $14 |
| Florida | $195 | $16 |
| Georgia | $215 | $18 |
| Hawaii | $185 | $15 |
| Idaho | $160 | $13 |
| Illinois | $175 | $15 |
| Indiana | $185 | $15 |
| Iowa | $160 | $13 |
| Kansas | $165 | $14 |
| Kentucky | $200 | $17 |
| Louisiana | $235 | $20 |
| Maine | $160 | $13 |
| Maryland | $170 | $14 |
| Massachusetts | $195 | $16 |
| Michigan | $195 | $16 |
| Minnesota | $165 | $14 |
| Mississippi | $220 | $18 |
| Missouri | $175 | $15 |
| Montana | $160 | $13 |
| Nebraska | $165 | $14 |
| Nevada | $180 | $15 |
| New Hampshire | $165 | $14 |
| New Jersey | $170 | $14 |
| New Mexico | $190 | $16 |
| New York | $200 | $17 |
| North Carolina | $200 | $17 |
| North Dakota | $160 | $13 |
| Ohio | $185 | $15 |
| Oklahoma | $220 | $18 |
| Oregon | $160 | $13 |
| Pennsylvania | $175 | $15 |
| Rhode Island | $185 | $15 |
| South Carolina | $200 | $17 |
| South Dakota | $165 | $14 |
| Tennessee | $205 | $17 |
| Texas | $210 | $18 |
| Utah | $160 | $13 |
| Vermont | $160 | $13 |
| Virginia | $170 | $14 |
| Washington | $170 | $14 |
| West Virginia | $185 | $15 |
| Wisconsin | $160 | $13 |
| Wyoming | $160 | $13 |
How much is most Renters Insurance?
One of the most appealing aspects of renters insurance is its affordability. The average cost of renters insurance is remarkably low, typically ranging from $15 to $30 per month. This small investment can provide significant financial protection for your belongings and liability.
Is it legal to require Renters Insurance?
Yes, it's perfectly legal for landlords to require renters insurance as a condition of the lease agreement. In fact, many landlords do so to protect their property and ensure that tenants have adequate coverage in case of accidents or damage.
How often should you shop around for renters Insurance?
It's recommended to shop around for renters insurance at least once a year or whenever your circumstances change (e.g., you acquire new valuable items or move to a new location). Comparing quotes from different insurance providers can help you find the best coverage and price for your needs.
Why is it important to shop around for Insurance?
Shopping around for insurance allows you to compare coverage options, premiums, and discounts from different providers. This ensures you're getting the best value for your money and the right level of protection for your specific needs.
Why should you purchase Insurance?
Insurance provides financial protection against unexpected events that could lead to significant financial losses. It offers peace of mind knowing that you're covered in case of accidents, theft, damage, or other unforeseen circumstances.
Why should I have liability Insurance?
Liability insurance protects you financially if you're held responsible for someone else's injuries or property damage. It can cover medical payments/ expenses, legal fees, and other costs associated with the incident, safeguarding your assets and financial well-being.
What is the most common source of Insurance?
The most common source of insurance is through private insurance companies. These companies offer a variety of insurance products, including renters insurance, to individuals and businesses.
Read More
Your Affordable Guide: Unlocking Renter Insurance Discounts
Renters in High Crime Areas: Essential Theft and Damage Coverage Tips
Protect Your Second Home: Best Homeowners Insurance
Conclusion
Renters insurance is an essential and affordable way to protect your belongings and yourself from financial losses. By understanding your coverage options, shopping around for the best rates, and taking advantage of available discounts, you can ensure you have the right protection at a price that fits your budget. And with the added security of Kangaroo's home security solutions and Dory's discount assistance, you can enjoy even greater peace of mind in your rented home.
