Renters insurance is one of the types of insurance that tends to be thought of as “not necessary” or that it is just “too expensive”. This type of reasoning is simply a barrier to the protection that is caused by the insurance buyer’s lack of understanding when it comes to the way in which insurance is priced.
For most people, a renters insurance policy can be obtained with little or no additional cost from what they are paying for their insurance already (auto insurance, motorcycle insurance, etc.). The majority of preferred auto insurance companies offer multi-policy discounts for individuals who also purchase their home or renters insurance from them as well.
I recently took a call from a long-time friend inquiring about how much renters insurance would cost for he and his girlfriend. He had assumed that the policy would cost hundreds of dollars and be too expensive to actually purchase. But since they had recently suffered from a break-in and theft of thousands of dollars worth of property, he figured he had to ask.
I simply asked him what insurance company was currently insuring their cars and mentioned that if they were paying more than $1,000 per year in premium, that the renters insurance would be virtually free. One insurance company, the same company that currently insured their cars, offered a renters policy for his situation with an annual premium of $249 per year, but also included a 22% credit on his $1,100 auto insurance. When the renters insurance premium and auto insurance credit were combined, his overall insurance cost actually decreased by $1.50 per year and he was able to protect against another theft claim in his apartment.
Many insurance consumers simply lack the information that will allow them to protect their possessions without spending any additional money on insurance. Similar dollar savings can be seen when people combine their home and auto insurance as well. To get a free quote, please call Lorraine Azevedo in our office at 209-634-2929.
Matthew Davis MBA, AAI