If you are renting, then you are going to need renters insurance. It will protect your possessions in case of a natural disaster or theft. But there will come a time that you will need to cancel your renters insurance. Here are simple steps to take, to cancel renters insurance. And also reasons why you shouldn’t cancel your renters insurance.
Canceling your renters insurance
Renters insurance can be canceled fairly easily. You still want to follow proper instructions to make sure that you avoid any penalties. With just a few simple steps you can terminate your policy immediately.
- The first step is to contact your insurance provider and let them know that you want to cancel your policy.
- Ensure that you are not under any sort of agreement that might lead to a penalty when canceling.
- If required, provide your insurance provider a written notice of cancelation.
- Based on your provider and when within your policy you cancel, you might see a refund. If you are going to receive a refund, make sure you provide an accurate address for them to mail you a check.
When should you not cancel renters insurance
While the process of canceling renters insurance can be easy, there are situations that you shouldn’t cancel your policy. If you cancel by mistake, you risk the chance that something bad happens and you have no coverage. Make sure you are not canceling for any of the below reasons.
Moving – If you are moving to a new address, check with your provider to see if they cover your new address. You can then do a move request that can be added into your policy and help avoid any penalties.
Buying a home – If you are buying a new home, you will need a different type of policy as renters insurance will not work. Prior to canceling, check and see if your policy provider might also offer home insurance coverage. If they do, they might be able to change you to new coverage. You might also be able to receive a lower rate as you have history with the provider.
Traveling – You might be traveling for a long period of time and might want to cancel your policy to save money. This can be a risky because your personal items will not be covered if there is a break in or natural disaster. And the chances of a break in are more likely when you are traveling for a long period of time.
Choosing a renters insurance policy
Before you begin shopping around and choosing an insurance policy, take a survey of all your belongings. Understand what items you own and what will require coverage if your are to lose the item in theft or damage.
Once you have a list of all your belongings, take the below 3 steps to choosing the right renters insurance policy for you.
- Choose the right coverage amount
You should have an accurate idea of the coverage amount you need since you have an inventory of your belongings. Try to not overestimate your items, because the larger your coverage amount the more you might pay for your policy.
- Ask about coverage
Make sure you find out what the insurance provider covers. While most renters insurance covers theft and fire some might not cover earthquakes or flooding. Also consider where you are living. If California, you might want to consider a policy that covers earthquakes, but if you live in the east coast you probably won’t see one so why pay for it.
- Know the different coverage types
With renters insurance, you will have two different coverage types. You can pick from an Actual Cash Value, which can be a lower premium and a Replacement Value policy. With an actual case value, depreciation is accounted when determining damages. Depending on how long you have had the items in question, you won’t get as much back. With a replacement policy, you will see a refund in the market value of the loss or the cost of a similar item.
Need help with renters insurance?
If you have any other questions or need help with renters insurance, feel free to contact us and we would be happy to help.