Premiums

Glossary

In terms of renters insurance, premiums refer to the amount of money you pay to the insurance provider for your policy. Typically, you pay monthly premiums for renter’s insurance policies, although some companies may offer quarterly or yearly premiums as well. Should you fail to pay your premiums on time, your insurer may cease to provide the policy’s benefits.

How are Premiums Determined?

There’s a lot that goes into determining a renters insurance policy’s premiums and each insurer uses a different set of guidelines. One of the primary factors for coming up with renters insurance premiums is simply the amount of coverage. Generally, the larger and more inclusive your insurance policy is, the more expensive your premiums will be. In most cases, your renters insurance premiums run in contrast to your deductible. A higher deductible leads to lower premiums, and vice versa. Other important factors include the value of the residence and the types of perils it may be at risk for. Some people are surprised to find out that their credit score can also play a role in determining premiums. Obviously, the higher your credit score, the more likely you can secure lower premiums.

How to Lower Your Premiums

Of course, when it comes to premiums, the main concern of most renters is getting them as low as possible. Fortunately, there are a couple methods for decreasing premiums. Here’s a few of the most common ways to lower your renters insurance premiums:

• If you have renters insurance, chances are you have a couple other types of insurance as well. Whether it’s health, auto, or life insurance, consider purchasing them all from the same provider. Many companies will give out discounts to customers that use them for all of their insurance needs.
• Although it could end up costing you more in the long run, increasing your deductible will typically lead to lower premiums. Just keep in mind that you’ll have to pay your deductible if you ever have to make an insurance claim.
• Are you a smoker? Many insurance companies want to know whether or not their customers smoke because it is one of the leading causes of residential fires. Some insurers are willing to offer lower premiums to renters that do not smoke. If you’ve recently quit smoking, let your insurance company know and find out if you’re eligible for a discount.
• Have you maintained your renter’s insurance policy with the same provider for several years now? Try staying with the same company for as long as possible, as many will reward your loyalty by offering 5-10% off your policy after 3-5 years. If you’ve already had your policy for more than 3 years, try requesting a discount!
• Finally, don’t be afraid to shop around and compare multiple quotes from different insurance providers! If you’re not satisfied with the premiums you’re currently paying, find a new insurer! There are hundreds of apartment renters insurance companies online and many offer free quotes for their service!