Looking For Renters Insurance? Don’t Let Your Agent Bamboozle You
Renters insurance, it’s a thing. If you’ve ever rented an apartment, chances are you did some research into whether or not you should get renters insurance. You know, the kind where you’d be covered if stuff happens to your rental unit or things inside of the rental unit. Why do I bring this up now? Well, because I just found out that many insurance agents are trying to bamboozle (yes, bamboozle) people looking for renters insurance into buying a more expensive policy, claiming that they need more coverage than they actually do. After doing some research on this subject, here’s why I believe agents may be trying to do this and how you can avoid the scam.
Don’t let your insurance agent bamboozle you.
When it comes to insurance, we tend to be a bit lax when it comes to protecting ourselves from unnecessary charges and policies. We trust our insurance agents with our money and put a lot of faith in them as professionals who will help us make the best financial decisions for our families. But how often do we really stop to think about what they’re telling us?
To avoid buyer’s remorse after a purchase, consider these tips: – Make sure you know your options. Don’t rely on one agent or company’s recommendations. Research companies and prices by shopping around. Some companies may offer discounts if you bundle multiple types of policies (i.e., home, auto, and life) with them.
It’s always better to make informed decisions than to pay extra fees because you decided not to research something. – Read the fine print. The details can be difficult to understand, but don’t just accept them at face value. Insurance is about coverage, but if you don’t know what you’re paying for and why you need it, then you won’t be able to adequately weigh the benefits vs. the costs of the policy. It’s important that the coverage matches what your family needs.
Look for a renters insurance policy with flexible payment options.
Given the fact that the average renter lives at a different residence for three years and moves every 18 months, you can understand why they would want to pay their insurance bill on a month-to-month basis. It’s not just convenience; it’s also important for people who may have some financial ups and downs during the year.
You can purchase renter’s insurance online, over the phone, or in-person with an agent. The policies are very similar, but you should know what your options are before making a decision about which policy is best for you.
Here are some of your choices for paying for renters insurance:
Monthly premium: Some policies will allow you to pay your monthly premium in equal payments throughout the year.
Semi-annual premium: Some companies will allow you to split your yearly premium into two payments. For example, if your annual premium is $600, you can pay $300 in January and then $300 in July.
Yearly upfront payment: You can make one lump-sum payment at the beginning of each year. This is common with renter’s policies through agents because they make money by selling insurance.
Payment discounts: Some companies offer discounts if you pay your premiums on time every month or refer new customers to them.
Ask the right questions when you’re shopping for renters insurance and you’ll be better informed about your options.
Here are some of the most important questions to ask:
What is covered?
There are two big things to know here:
What is included in your policy and what isn’t?
A policy might include protection against theft, fire, damage from falling objects, and electrical surge. It might not include floods, earthquakes,s or other common disasters. TIP: Make sure your policy covers the possessions you need to replace.
How much will it cost me?
Renter’s insurance premiums vary wildly between companies. If one company offers $40 a month for $40,000 worth of coverage while another charges $70 a month for the same amount, that’s a significant difference — even if it doesn’t seem like much money. Find out what kind of discounts your insurer offers — and make sure you qualify — before you buy.
How long will my coverage last?
Most policies are in place for 12 months but can extend up to five years. For example, if you’re leasing an apartment in Boston and plan to stay there until December 2023, buying a policy that expires in December 2022 might not be a good idea because you could be without coverage during a moving period.
When shopping for renters insurance, make sure that you’re getting the right policy and understand what is covered. Don’t be afraid to ask questions, especially if you think the policy doesn’t meet your unique needs.
If a sales representative doesn’t seem trustworthy, it may be time to look elsewhere. Before signing on the dotted line, always read your entire policy so that you know what you’re covered and won’t be surprised later when you file a claim.