Will My Renters Insurance Drop Me For Not Paying?
Renters insurance, like most other insurance policies, only covers you so long as the policy is active. Policies can be deactivated if premiums go unpaid. Some insurance providers have a more lenient time frame for payment, but insurance agencies work to protect the agency’s assets when a client stops paying for services. It is possible for an insurance agency to cancel your policy if it goes unpaid.
It’s important to avoid missing payments. There are many ways you can do this, including lowering your renters insurance premiums.
Saving Money On Renters Insurance
Renters insurance premiums vary depending on a variety of factors, including your:
- Coverage Limits
- Credit History
Overall, renters insurance is relatively inexpensive. Most renters insurance policies cost around $15 a month. You can save money on renters insurance by building your credit, raising your deductible, and asking about discounts. Raising your deductible can save money on monthly premiums, but it also means paying more out of pocket when it comes time to file a claim.
While some renters insurance coverage is required, these limits are normally affordable.
Setting Up Automatic Payments
Another way to both save money and prevent cancellation of your policy is to set up automatic payments. Most insurance providers offer auto-draft payments for renters insurance policies. This way, you don’t have to worry about missing a payment.
What To Do If Your Policy Is Cancelled
So, what happens if you take all the proper precautions, but your renters insurance policy is cancelled?
First, it’s important to keep documentation of everything, including payments and interactions with the insurance agency. This is both to protect yourself and to ensure you have the information if asked for it by your landlord. Since renters insurance is often required, some landlords may evict renters who fail to maintain proper renters insurance coverage. A landlord should give the renter proper notification, including a time limit for procuring coverage. During this time, you should search for another insurance provider to regain coverage. Keep in mind that finding a policy after one has been cancelled can both be difficult and more expensive.
Shop between insurance providers to find the best policy and the best price. Do your best to avoid missing payments and keep your landlord and insurance agency informed of late payments or payment issues.