If you rent your living space, you have likely heard that renter’s insurance can provide protection for your belongings. Like any other type of insurance, renter’s insurance is offered by a wide range of insurance providers, with each offering its own coverage limits and pricing.
If you’re in the market for this type of insurance, it’s important to find a policy that is affordable. However, you also don’t want to give up important coverage just to save a few bucks a year.
Read on to learn how to find affordable renter’s insurance with the coverage you need for peace of mind without burning a hole in your pocket.
What Is Renter’s Insurance?
Renter’s insurance is a unique type of insurance specifically designed for customers who rent their homes. These insurance products are similar to home insurance since they cover things like liability, damage to personal property, and other coverages you typically find within a homeowner’s insurance policy. However, the primary difference between these types of policies is that renter’s insurance does not cover the dwelling.
If you rent your home, renter’s insurance is an absolute must. It’s relatively inexpensive and can help you avoid a significant financial burden when various events occur. For example, if an electrical fire makes your home uninhabitable, renter’s insurance will help cover the cost of the items you lost to the fire and reimburse you for money spent to relocate while your home is being repaired.
What Does Renter’s Insurance Cover?
Renter’s insurance typically provides three types of coverage, including:
- Liability: What would happen if your dog bit one of your visitors? What if your guest slipped on a spill in your kitchen and broke a bone? Chances are you’d be liable for the damages, which could cost hundreds or even thousands of dollars. If you have renter’s insurance, you can file a claim to cover these costs.
- Personal Property: Renter’s insurance covers all the personal property you have in your home against damage or theft. So, whether a fire or a thief causes the loss of your property, your insurance company will pay to replace your belongings.
- Additional Living Expenses: There are many events that may cause you to be displaced from your home, resulting in additional living expenses. In this case, if you have renter’s insurance, your policy will likely cover costs such as hotel rooms and food expenses associated with living away from home while you await repairs.
What is Not Covered by Renter’s Insurance?
Renter’s insurance is a great way to protect yourself from significant financial hardships, but it doesn’t cover everything. Here are a few things renter’s insurance doesn’t cover:
- The Dwelling: As the renter, you’re not responsible for damages to a dwelling resulting from events that homeowner’s insurance typically covers. For example, storm damage, fire damage, and vandalism to the dwelling itself are all the responsibility of your landlord and their insurance company.
- Deliberate Damage: If a deliberate act results in damages to property or injuries, your insurance company won’t cover the costs. For example, if you’re filming a YouTube video in your kitchen to show what happens when you try to deep fry a frozen turkey, the resulting damage becomes your responsibility.
- Exclusions: Most insurance policies come with exclusions. For example, your policy may not provide coverage for a trampoline on the property. If you ignore this by setting up a trampoline and your neighbor’s child breaks their arm on the trampoline, the liability falls on you due to the exclusion.
What Is the Average Cost of Renter’s Insurance?
At Torian Insurance, we serve most of our customers within about a 50-mile radius of Evansville, Indiana; we have customers in Indiana, Kentucky, and Illinois. Here are the average prices for renter’s insurance in these three states:
- Indiana: The average renter’s insurance policy in Indiana costs about $156 per year or about $13 per month.
- Kentucky: The average renter’s insurance policy in Kentucky costs about $125 per year or just over $10 per month.
- Illinois: The average renter’s insurance policy in Illinois costs about $124 per year or just over $10 per month.
Keep in mind that the prices above are averages only, configured by looking at the basic averages among different insurance companies. The cost of your insurance policy depends on the coverage limits you choose and other factors, so your renter’s insurance policy may vary from the prices listed above.
6 Tips for Finding Affordable Renter’s Insurance
If you’re shopping for affordable renter’s insurance, the price is important, of course. After all, you want to make sure you’re making the most of your money, but it’s also important to remember that you get what you pay for.
As you compare your options, consider price as an important factor, but not the only factor. After all, you’ll pay less for a $1,000 coverage cap than you will for a $100,000 coverage cap. On the other hand, $1,000 coverage isn’t going to go very far, so don’t jeopardize the coverage you need to save a few bucks a year.
Nonetheless, there are ways you can save money while you get the coverage you need. Find the details of them below.
1. Get Multiple Quotes
One of the best ways to find cheap renter’s insurance is to simply look for it. If you only request one quote, you’re only going to know the price one insurance company charges for the coverage you need. So, it’s important to shop around, get multiple quotes, and compare your options to find the best price.
One of the easiest ways to do this is to go through an independent insurance agency. Independent agents work with multiple insurance companies that have to compete with one another for your business. This results in the best coverage at the lowest possible price, so you can rest assured you’re getting a great deal.
2. Adjust the Deductible to Meet Your Needs
You’re likely familiar with insurance deductibles. A deductible is the amount of money you must pay out of pocket before the insurance company begins to cover your damages. Deductibles for renter’s insurance policies work just like they do for auto, homeowners, and other insurance policies.
This means that the deductible you choose plays a significant role in the price of your premiums. For example, a renter’s insurance policy with a $0 deductible is likely to cost significantly more than a policy with a $1,000 deductible.
As you shop, think about the deductible amount you’d be most comfortable with in the event of an emergency. If you can afford a higher deductible, you’ll pay lower premiums.
3. Bundle & Save
Renter’s insurance isn’t likely to be the only insurance product you’ll need. For example, chances are that you have a vehicle and maintain car insurance on it. Insurance companies want to bring as much of your business through their doors as possible, so they’re often willing to provide steep discounts if you bundle your policies.
Talk to an agent about all of your insurance needs and explain that you’re interested in using one provider for all insurance products in exchange for a bundle discount. You might be surprised at just how much money bundling your products can save you.
4. Invest In Home Safety
Risk is the most important aspect of insurance for insurance companies. It’s their job to measure the risk associated with each policy they write and price the policy accordingly. As a result, if you’re able to reduce the financial risk you pose to the insurance company, you’re likely able to get better premiums.
For example, consider adding a security system with cameras to your home. The security system helps to protect you from break-ins, and it can move with you when you decide to purchase a home or rent elsewhere.
Most renter’s insurance companies offer discounts for security systems and other upgrades you make to improve the safety of your home. After all, criminals are less likely to commit crimes when cameras are rolling.
5. Pay Your Premium In Advance
Everyone likes to be paid in advance, and insurance companies are no different. In fact, most insurance companies are willing to offer discounts if you pay your entire annual premium at once, rather than making monthly payments.
Ask your insurance agent if you can access a discount by paying your premium in advance. This is no small savings either. The average discount for customers who pay for their insurance in advance is 20%.
6. Ask About Other Discount Options
Insurance companies thrive when they land as many paying customers as possible. As a result, they tend to offer varying discounts that work to their advantage as sales tools and to yours as ways to save money.
The discounts mentioned above aren’t the only savings opportunities offered by insurance companies. Some also provide the following ways to get a good deal:
- Paperless Statements: The insurance company has to pay for the paper, ink, manpower, and postage associated with sending your bills through the mail. As a result, if you opt for paperless billing, you save the insurance company money, which is typically passed back to you in the form of a discount.
- Military Discount: Many insurance companies offer discounts to those who risk everything for our country and the families that support them.
- Teacher Discount: Teachers mold the minds of the next generation of leaders. Some insurance companies reward them with discounts.
Get Affordable Renter’s Insurance With Torian Insurance
Torian Insurance is an independent insurance agency that serves customers in and around the Evansville, Indiana area. As an independent insurance agency, Torian has access to outstanding coverage options from leading providers. By partnering with multiple providers, we can create competition that ensures an accessible plan for all budgets.The team at Torian works for you and has a vested interest in finding you the best coverage at the lowest possible price and are committed to delivering the best customer experience possible. If you live in or around the Evansville, Indiana area, give us a call to speak with a representative and learn more about how we can help you find affordable renter insurance coverage.