If you rent your home, renters insurance helps protect your possessions in the event of a natural disaster or theft. Like all insurance, renters insurance offers a determined level of compensation in exchange for monthly or annual premium payments. For most people, the cost of the premiums is a major factor in deciding which renters insurance to choose, so it makes sense to know how to compare renters insurance premiums.
Step 1
Compare the premium cost. This is the amount of money you'll pay each month or year for your renters insurance policy. Ask if you get a discount for paying the full amount with one payment instead of paying over the course of the year.
Step 2
Look at the deductible. The deductible is the amount of money you'll have to pay out of pocket before your renters insurance takes over. For instance, if you have a $2,000 deductible and your $2,200 entertainment system is damaged, your insurance will only pay for $200 of the damage; you'll have to pay the remaining $2,000 as your deductible. Usually, the higher your deductible, the lower your insurance premiums will be. Consider raising your deductible to lower your premiums, but be sure to choose an amount that you could pay if you needed to.
Step 3
Make sure you're getting all the discounts you qualify for from your insurance company. Ask the insurance companies you're considering about discounts for smoke and security alarms, dead-bolt locks, storm windows, fire-resistant construction and other premium-lowering incentives. You may find your premium significantly decreases with discounts offered by a particular company.
Step 4
Compare the reimbursement options. You can choose between cash value coverage, which replaces your belongings based on their current value, or replacement coverage, which covers the cost of replacing your belongings for their current new retail value. Cash value coverage generally comes with less expensive premiums.
Step 5
Choose the policy that has the best value by considering the premium in addition to the deductible and coverage.
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