If you decide to purchase New York Renters Insurance and you are on a tight budget, you may be concerned with the monthly or yearly costs. The cost of renter’s insurance, although usually inexpensive, may even cause you to forego this important coverage altogether. Research has shown that the average renter owns about $30,000 in personal property. Without renter’s insurance coverage, you would need to have that much money in your savings account in order to replace your belongings in case of a disaster such as a fire, earthquake, or flood. The insurance that your landlord carries will only cover the building itself, not the contents. Don’t let the price of rental coverage dissuade you from buying a policy — there are several ways to save on renter’s insurance.
Shop around — Check with several different insurance companies to compare rate quotes. Some insurance agents can provide quotes from multiple companies to save you time. Companies are very competitive so it pays to shop around. The Internet is a great resource.
Raise your deductible — The deductible is the amount of money you have to pay toward a loss before your insurance kicks in. Typically, renter’s insurance deductibles start at $250. This means if your $2,000 leather couch needs to be replaced, you pay for $250 of the replacement cost and the insurance company will pay the other $750.
You can increase your deductible to:
- $500 and save up to 12 percent on your premiums.
- $1,000 and save up to 24 percent.
- $2,500 and save up to 30 percent.
- $5,000 and save up to 37 percent.
Just make sure that you can afford to pay the higher deductible out of your own pocket if something should happen and you need to file a claim.
Maintain a good credit rating — Having a good credit rating is one of the best ways to lower the cost of any insurance policy. Pay your bills on time and try to reduce your installment debt (such as credit cards).
Buy your auto and renter’s insurance from the same company — Many companies will give a multi-policy discount if you buy both renters insurance and auto coverage from them. Other policies can be bundled as well such as motorcycle, life, or other types of insurance.
Install safety and security devices in your apartment — Some companies will give you a discount if you install smoke detectors, a fire extinguisher or dead bolt door and window locks in your apartment. A simple written statement that you’ve installed these items is usually all that is required to get the discount.
Stop smoking — Smoking accidents account for more than 23,000 residential fires every year. Some insurers will reduce premiums for non-smokers.
Ask about senior discounts — Retired people stay at home more and spot fires sooner than working people. If you’re a senior you may qualify for as much as a 10 percent discount.
Look for group coverage — Some employers, alumni groups, unions, guilds, credit unions or business associations offer discounts for employees and members on insurance.
Stay with an insurer — Some insurers will reduce their premiums by 5 percent if you stay with them from three to five years, and some companies will discount you as much as 10 percent after six years. It pays to be loyal.
Adjust your policy annually — If you review your policy every year, you can make adjustments to reflect changes in your inventory of insured items. If you bought or sold expensive electronics, a computer or jewelry during the year, for example, you may be able to decrease the amount of coverage for your possessions.
After spending an exorbitant amount of money for a tiny apartment in New York City, the last thing you want to think about is shelling out even more money on something like renter’s insurance. If you rent an apartment in New York City, you should know that the owner of your building doesn’t have insurance to cover your personal items in case of fire, water, or other damages. Their insurance covers the building itself, not the contents of your apartment. That’s why you should purchase some type of renter’s insurance to assure that you are completely covered. Some New York landlords even require that their tenants purchase renter’s insurance as a stipulation of their lease. This requirement isn’t always enforced, however, leaving many tenants in a position to forget about this important coverage completely.
1. I don’t need renters insurance because my landlord/building owner is covered. The fact is that the landlords policy will cover only the landlord’s structural damage to the building (or house) itself, not the personal items of the tenants. The tenant is responsible for his/her own insurance if they want coverage.