Every year, it's a good idea to revise all of your insurance policies. Get new quotes on your auto insurance; make sure you have enough health insurance... but what about your renter's insurance? Most people just let their renter's insurance auto renew, but there are a few reasons you might want to consider taking a second glance at your policy.
Are You Still Getting the Best Rates?
Renter's insurance, as a whole, is usually fairly affordable. But there can be situations in which you can still save some money, especially on an annual basis. Getting quotes periodically from your insurance companies can give you a better picture on the amount of money you can save.
Has Your Household Changed?
Often, renter's insurance doesn't just consider you, but also others in your home. If you've gained or lost a roommate, your rates could have changed. This is because there's higher risk involved when more people live in the same home. Make sure you've updated your household list with your insurance company. Even though you get lower rates without listing everyone, you could find that things aren't covered if you haven't reported everyone.
Have You Purchased Additional Items?
Don't forget that your insurance only covers a certain value of items in your home. You may have started your policy when you had $10,000 worth of stuff, but what if you've increased your household size to $20,000? If you lose everything, you're only going to get half that replacement value!
You should also know that each individual item has a cap. Your cap could be $1,000, which means if you lose a single item that is worth $2,000, you'll only be reimbursed for half. If you've bought any expensive items, you might need to increase that individual item cap, or get insurance for your items separately.
Has Anything Else Changed?
Some significant events could be installing a security camera, getting a new dog, or adding a child to the household. Some events can reduce your insurance rates while others can increase them, but all of them are necessary to report to ensure that your insurance policy is accurate. For instance, it may be cheaper not to report getting a new dog, but that also means that a dog bite isn't going to be covered under your insurance policy.
It only takes an hour to do a thorough review of your current insurance policy, and it's worthwhile; not only could you save money on insurance, but you also don't want to find out you aren't covered for what you thought you were!