This post was provided by the Austin Real Estate experts at Realty Austin.
Whether you rent an apartment, home, or condo, renter’s insurance is essential to protecting yourself and your belongings. Though there is uniformity across most insurance policy pricing, you can still find several ways to save money. Here are some easy tips for saving on your renter’s insurance.
The first step is to visit an insurance comparison website. This way, you will know which companies offer the cheapest insurance. There are numerous insurance comparison websites where you can get and compare insurance rates from well-known companies.
Another way to save on your insurance is to buy your renters and auto insurance from the same company. This can save you up to 15% on your yearly premium. Most of these companies offer discounts if you subscribe to their insurance packages.
A third way to save is to pay for insurance a full year in advance. You can usually save about $20 if you pay for your insurance once a year instead of monthly. This also applies to other types of insurance.
If you are a senior citizen, then there’s additional discount benefit in your renter’s insurance. Most companies offer a minimum 10% discount for seniors. Many companies also offer a discount for non-smokers. Smoking is the most common cause of residential fire-related deaths. Quitting smoking will benefit both your insurance premiums and your health.
Your renter’s insurance policy will give you peace of mind in knowing that home is protected. Take the time to estimate the value of everything you own and make sure you are covered for at least that amount. It is essential that you do your homework and research your options before making a decision. Finally, make sure that you review your policy every year. Any significant changes to the value of your home or possessions should be reported to your insurance provider.
Keep in mind that you can save money by simply having insurance. We cannot avoid accidents all the time, but at least we can be covered in the case of an emergency.
Picture this: A college student—we’ll call him Larry—of meager means rents his first studio apartment. It is the typical young person’s starter home: cheap TV and cheaper sofa, packing box for coffee table, futon cushion for bed. Does this kid need renter’s insurance? Most people think the coverage is in place to protect the holder’s property in case of theft. Since Larry has nothing, why insure it? What is often missed is that the coverage also protects the holder’s assets in case of mishap.
Say the person living downstairs from Larry has lots of very expensive stuff. Now imagine Larry gets drunk, comes home, runs a bath and passes out. Water overflows from the bathtub and drains into the apartment below. Lots of very expensive stuff is ruined. Renter’s insurance covers the costs and saves Larry from a life of indentured servitude.
What if a pipe bursts in the apartment above Larry and not only is Larry’s stuff totaled, but he needs to find some place to crash until the landlord can fix the mess. Having insurance can mean the difference between couch surfing and staying at a nice hotel with a real bed.
What if Larry wants to impress a girl and has some friends over to help him paint the pad before the big date. Then one of his pals falls off the ladder while painting the ceiling and breaks an arm. Renter’s insurance will usually have liability protection, which means that if someone in the apartment slips and falls, the policy holder is covered for any costs, up to the liability limit. And if Larry’s friend sues him, he’s covered for what they win in a court judgment up to your policy’s limit, along with legal expenses.
So, how much does this cost? Just like any other insurance, the premium depends on a number of factors: location, deductible, insurance company and the need for additional coverage. If you shop around, you’ll probably find a policy for $150 and $300 per year, which will get you about $30,000 to $35,000 worth of coverage for your personal possessions and somewhere between $100,000 and $300,000 worth of liability protection.
Come on, admit it, even if you don’t have much, it’s still worth it to cover yourself with some renter’s insurance, ‘cause you never know, right?
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