7 Discounts to Know About on Renters Insurance
Though renters insurance is generally affordable, it is still smart to make sure that you apply all the discounts that are available to you. Some insurance companies restrict the number of discounts that they apply to renters insurance but many insurance companies apply most of the same discounts that they use for homeowners insurance policies.
- The largest possible discount for renters insurance is the multi-policy discount (typically 15 – 30%) for packaging your auto insurance and renters insurance policies together. I have seen many situations where the dollar amount for the discount on the auto insurance policy exceeded the cost of the renters insurance coverage. Consequently getting two policies for less than the premium for the auto insurance coverage alone.
- Most insurance companies give discounts for safety equipment (usually in the range of 2 – 10%) such as: smoke detectors, dead-bolt locks on all exterior doors, and fire extinguishers.
- Virtually every insurance company will offer discounts for alarm systems for fire and/or burglary. The amount of the discount is determined by whether the alarm is just a local alarm (generally 5%), or a central station monitored alarm (10 – 15%).
- If you live in an apartment building there can be a discount if the building has a system of "controlled access," or if there is 24 hour security on duty. If you live in a home in a gated community there can also be a discount.
- If the buidling has a sprinkler system there is a discount of from 10 – 20% depending on the insurance company and whether the sprinkler system covers the entire building or just certain living areas.
- Other discounts that can apply are: if the building is less than 15 years old, if everyone in the household is a non-smoker, or a senior discount if the residents are all 55 or over and retired.
- Recently insurance companies have been adding discounts if you pay the annual premium, or pay with automatic payments using electronic funds transfer or credit cards.