Insurance rates depend on several different factors; what you want the deductible to be, how much coverage do you want, where and how you live. So there are several things you need to think about, it isn’t like running to the store for a gallon of milk.

Basic Renters Insurance Rates

One of the most basic of questions to ask your self, is do you need renters insurance in the first place. It is common now-a-days for a landlord to require that insurance be purchased. That keeps the landlord safe from any future misunderstandings. You see, the landlord will have the building insured, but that doesn’t cover your belongings.

If you are not required to have it, you have to ask yourself, if the house caught on fire, could I replace all my stuff. Chances are the answer to that is no, unless maybe you are a collage student using milk crates for end tables. And anything super valuable, like an antique or jewelry, should be insured on it’s own, as most basic plans won’t cover that sort of thing at all.

Many insurance plans have various types to choose from. The higher you set your deductible, the lowered the monthly payments will be. Just make sure that deductible is set at an amount you will be able to afford.

Renters Insurance Rates: Actual Cash Value versus Replacement Cost

Most insurance plans calculate their pay out one of two ways. The first is Actual Cash Value. That is the price of the item determined at the time you lost it, meaning you would get what it was worth minus depreciation. For example, you went out and bought a top of the line big screen TV for $3000.00, but it is 3 years old now, so the insurance company is only going to pay you $1000.00. So now, you can’t replace it to the same standards as the old one.

Replacement Cost is where you are given what you paid for it. Using the example above, you would be given $3000.00 for that same TV. And that can, at times work in your favor. Computers have come way down in price, so you might even be able to upgrade in certain circumstances.

These two different methods of payout affect how much your renters insurance rates come out too. Obviously, one way pays more, so that plan is going to cost a little more to have.

Keeping Renters Insurance Rates Down

As with car insurance, there are ways to keep your renters insurance rates down. And as these things will help the landlords rates as well, you may be able to get them to chip in too.

The purchase of a fire extinguisher is an easy one. This is a one time purchase from your local hardware store. Knowing that you might could stop a fire before it got out of hand, can lower your insurance costs. Another one, that is a simple trip to the store, is installing deadbolts. You can do this in an hour; though be sure to get the landlords permission, as it is his property.

Another super simple thing to do is to have your renters insurance with the same company that insures your car. Most places give a discount if you keep all your stuff in one place.

Now insurance companies like to see security systems in place, of course those cost a bit. But again, check into these things with your landlord, between the two of you, you may come up with a more cost effective plan. Sprinklers are something else to consider.

At the end of the day, you have more control over your renters insurance rates than you might have believed. Talk with your agent and your landlord. Both have experience with such things and can give good solid advise.

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Filed under: Renters Insurance Policy • Renters Insurance Rates

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