Affordable Renters Insurance: Finding the Best Value

Although renters may generally not have invested quite as much into their homes and homeowners, these temporary living arrangements still require versatile and robust financial protection. Renters face many risks and exposures similar to those who own their homes, making renters insurance a potentially critical investment.

What Factors Affect Renters Insurance Rates?

Renters insurance rates may be determined by many factors, including the following:

• Location
• Type of residence (e.g., apartment or house)
• Value of insured assets
• Credit-based insurance score
• Prior claims history
• Policy details (e.g., deductible, limits and endorsements)

How to Limit Renters Insurance Premiums

There are various strategies for policyholders to secure and maintain appropriate coverage while avoiding unnecessary expenses. Consider the following steps:

• Explore your options. Insurance carriers may vary greatly in the coverage options and premiums they offer. With this in mind, it may be advantageous to work with an independent insurance agent, such as those at Schaffner Insurance Agency, to peruse the offerings of several insurance companies and find the best deal.
• Bundle multiple policies. In addition to renters insurance, tenants may have additional coverage needs, such as for their cars. By purchasing multiple types of insurance, such as renters, auto and life, from the same carrier, policyholders may be able to reduce their total costs.
• Suggest safety and security measures. Although tenants may not have full control over the features and details of their building, they can still request that landlords implement various safety and security measures, such as fire suppression systems and surveillance cameras, which may lower perceived risk levels and garner reduced premiums.
• Consider relocating. A policyholder’s location is typically one of the primary factors determining their renters insurance rates. Population density, structural details of a building and local crime rates can all significantly impact premiums, meaning that relocating may help reduce insurance costs.
• Adjust coverage details. Like homeowners insurance, renters insurance policies can often be tailored to suit a person or family’s unique circumstances, including their needs, risk tolerance and budget. Making changes in a policy, such as increasing deductibles or lowering coverage limits, may lower rates. However, policyholders should be wary that such changes may lead to higher out-of-pocket costs in the wake of a covered incident.
• Explore discount opportunities. Some renters may be able to access lower premiums due to their unique circumstances. For example, seniors may sometimes qualify for reduced renters insurance rates. Similarly, members of certain organizations and professions, such as military service personnel and teachers, may be offered discounts.
• Maintain good credit. Many renters insurance companies check a tenant’s credit-based insurance score when providing quotes. This figure considers a prospective policyholder’s credit history and how likely they may be to file a claim against their renters insurance. As such, maintaining a high credit score may help limit premiums.

Get the Right Coverage

Contact the team at Schaffner Insurance Agency today to learn more about renters insurance or to get a personalized quote. We can help you compare quotes from multiple insurers to help you find the right coverage for your budget and circumstances.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.