What Affects the Price of Renter’s Insurance?
So you’ve decided to buy renter’s insurance. Good choice, without it you may be in big trouble. Your landlord’s policies covers his building, replacing everything between your own 4 walls is your problem. Furthermore, without the liability coverage of your policy, you are a lawsuit on the hoof for the hungry lawyers and litigious troublemakers of the world.
So how much will this set you back? Here are some of the things that determine your costs:
Will you need coverage for Actual Cash Value or Replacement Cost? Actual Cash Value deducts for the wear and tear that your older things have experienced, but even though they are not worth much as second-hand goods, just try replacing them. Prices rise yearly, so you may want to spend a little extra for Replacement Cost coverage that assures you can actually afford to replace your things.
How much stuff do you have? A family of six renting the top of a two family house has plenty. A single college student in a 400-square foot garret probably needs less coverage. So whether you inventory your goods first, or let your agent give you a ballpark figure based on a formula that takes dwelling size into account, the family will need more coverage and pay for it too.
Do you have possessions of unusual value such as expensive jewelry or coin collections? You will need to purchase additional riders for coverage. Here are some other things you’ll need separate coverage for:
Money, bank notes, coins
Business property (on and off premises)
Securities, negotiable instruments
Watercraft, including trailers, furnishings and equipment
Trailers (other than boat trailers)
Jewelry and furs
Firearms (limitation applies to theft only)
Silverware and goldware (limitation applies to theft only)
Do you live on the San Andreas Fault, in hurricane alley or the narrow strip of land between high and low tide in Fire Island? Expect to purchase additional coverages here. Floods, hurricanes and earthquakes are not part of a standard HO-4 (renters) or HO-6 (Condo Owners) property.
How can you cut the cost? Skip the pit-bull. This is a liability issue for your insurer. Dogs may raise your bill and some breeds particularly known for biting may make you uninsurable.
Invest in alarms and good home security. Not only will your insurer thank you by discounting your policy, but the police and fire department will also be grateful.
Are you a golden ager? Let them know it. Companies offer senior discounts.
Buy your auto and renter’s coverages from the same insurer. Another discount there.
Buying insurance is a tough decision, but its one less thing to worry about if the worst happens.