Renters insurance is not expensive; however, when an economic slowdown hits, everyone is looking for ways to cut expenses. If you have been working from home due to the COVID-19 pandemic or other reasons and know you will continue to do so in the following months, then now it may be a good time to revise your coverage and decide which costs are becoming unnecessary.
As shown in a previous blog post, cancelling your renters insurance entirely while working from home may not really save you money, even if you may be thinking that not too much can happen while you’re at home. In fact, based on the claims that are being filed during WFH periods, a lot of accidents can occur within your property’s perimeters as people change routines and reply more on home deliveries.
Before anything else, if you haven’t had any claims in recent years, ask your insurer if they can offer you any discounts based on that.
Then take a look at the list below and decide if anything applies to you when reviewing your insurance:
- Check if you can bundle any of your other insurances (such as auto insurance) with your renter’s insurance. Discounts may apply when you’re working with the same provider.
- Make a new inventory of your possessions and check if you haven’t overestimated their value. Sometimes people tend to apply the saying “Better safe than sorry” when purchasing their insurance, especially during prosperous times.
- Check with your provider if they can offer premium discounts when you’re upgrading your apartment for improved safety (such as buying a security system and/or installing smoke detectors).
- Decide if you really want a replacement cost value coverage (RCV) for your belongings instead of an actual cash value (ACV).
The first type of coverage will offer you the equivalent cost of a new item whereas the second option will provide the original price you paid for the item minus its depreciation. An ACV policy is cheaper than an RCV one.
- In case you are already paying for this, decide if you want to continue to have coverage for your most expensive possessions (electronics, your laptop or computer equipment, top-of-the-line sound system, jewelry or art). They usually require extra coverage.
- Take some time to shop around for better insurance options.
Also, whenever the time is right, assess the safety of your location. If you’ve been thinking for a while about moving to another place, keep in mind that you can also get an insurance discount if your apartment building is newer or has been recently upgraded, is close to a fire station and if your neighborhood is considered a low-crime area.
