Getting cheap renters insurance – How to save on premiums?
Renters insurance premium as well as homeowners one is determined by some conditions like location of your house, the company you are contracted to, your deductible and if you need any additional coverage. So, there are some pieces of advice how to lessen your premium bill for renters insurance policy:
1. Increase your deductible. A deductible is the amount you have to pay before your company will provide coverage for you. There is a direct dependence between premiums and deductible: the more deductible, the lower your premium and vice verse. Though keep in mind you can afford the amount you have chosen.
2. Do not buy a dog. Some insurers are not willing to sing contract with owners of certain dog breeds. Thus, if you are eager to have a dog, at least choose the breed wisely.
3. Install protective devices. Smoke detectors, fire extinguishers and burglar alarms are considered to be the most common types of protective devices. Some companies offer additional discounts if you have them.
4. Stay with one insurance company. If you buy several policies like car and home insurance it is offered to purchase them in one company. Most likely you will get a discount, called multi-line discount.
Percentage-based deductibles.
Pretend you have a coastal house which has been damaged by a wind storm. Broken windows and cratered roof – what a mass. Fortunately, your house is insured and now it’s time for your company to cover the losses. But what a surprise when you call your insurance agent and get to know your deductible has been shifted form flat-rate deductible to percentage-based one.
Your agent will surely explain you that there is a kind of rule for coastal homes to change flat-rate deductible to percentage-based. It could be changed when you renewed the policy some years ago. Though currently percentage-based rate equals only 1% of the home replacement value, but the amount of your deductible is about 4 000 dollars instead of 500 dollars or maximum 1 000 dollars as it was before. This might take you by surprise. Now you have to pay your deductible four or even eight times more to get the coverage.
