US renters insurance is for people living in a rental accommodation and offers financial assistance in case a policyholder’s belongings are damaged or stolen. A renters insurance USA policy covers the actual value of the destroyed, stolen or damaged goods belonging to the tenant and not the homeowner. This policy generally covers losses resulting from vandalism, theft, explosion, fire, lightning, snow, electrical surge, water damage and windstorm. However, you would need to buy a separate cover to protect your belongings from damage caused by floods and earthquakes.
Buying a renters insurance policy is essential as homeowners insurance does not cover losses to a renter’s possessions. In a survey conducted by Allstate and published in July 2008, only 40% of the respondents seemed to understand the importance of renters insurance. The survey also found that over two-thirds of renters had not estimated the cost of replacing their possessions in their home over the previous two years. Moreover, only one in five renters had photographed or videotaped their possessions over the previous couple of years.
The survey also highlighted that one of the prime reasons for people not buying US renters insurance was that they found it extremely expensive.
US Renters Insurance: Tips on Reducing the Premium
Here are some ways in which you can lower the premiums on a US renters insurance policy:
You can opt for a lower cover and reduce your premium. However, when adjusting the coverage, ensure that it is not so low that you do not receive the fair value of your belongings.
Increase the deductible. A deductible is the amount you need to pay for the insurance company to make its claim payment. By raising the deductible amount, you can reduce the premium.
Increase safety and security of the property. Insurance companies give discounts for properties where the probability of a theft or a fire is low. To avail these discounts, you could install intruder alert systems, smoke detectors and fire extinguishers. Moreover, you could rent a house in a less-crime affected location.
Multiple polity discounts: Opting for a policy that provides renters insurance as well as covers your car could make you eligible for premium discounts.