Battle-Proven Renters Insurance Cost Control Methods
There is a reason why you rent and do not yet own a home: you are budget conscious, and you don’t want to take on more financial liability than you can comfortably handle. At the same time, you know you need a quality renters insurance policy to protect you against financial devastation in the event of a catastrophe, like a burglary, fire, volcanic eruption, or what have you.
You also know that you need premises liability protection in case one of your friends slips and hits his head while playing hacky-sack in your kitchen and then sues you for $100,000 to get a new brain. This article can provide tips to help you get precisely the coverage you need, while ensuring renters insurance cost control.
Quick Tips for Renters Insurance Cost Management
First, if possible, opt for a high deductible. This is the cash that you will pay before your insurance company helps you on a claim. So, if you get a $500 deductible, that means, if someone steals your TV, your carrier will replace the TV minus $500 that comes out of your pocket. If you go for a higher deductible — say $1,000 — you will pay the first $1,000 out of any claim. It’s a trade off. Insurers reward you for a higher deductible by giving you lower premiums, since you assume more of the risk.
Another thing you should look out for when analyzing renters insurance cost saving strategies is Actual Cash Value ACV) versus Replacement Cost coverage. ACV coverage provides cash for your losses minus depreciation. So, say you bought a couch for $2,000 from Macy’s. Today, it might be worth $300 resale. If you opt for ACV, your insurer will give you $300 for a missing/stolen/destroyed couch. If you opt for Replacement Cost, on the other hand, your insurer will pay whatever it costs to get that same couch today it could be $2,000, could be more).
Don’t skimp on premises liability protection. You might be offered $100,000 coverage. Generally, renters should bump that up to $300,000. After all, say your crazy friend with the hacky-sack brains himself at your place. You could be held liable for his medical bills, rehabilitation, lost wages, and a variety of other costs. That kind of slap to your pocketbook could forestall the dream of homeownership off for years, if not decades.
Renters Insurance Cost Optimization: Get Quotes Now
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