Should You Cancel Your Renters Insurance to Save Money?
When to Cancel Your Renters Insurance or Not and How to Do It
Looking to save money by canceling your renter's insurance? Renters insurance can adapt to a variety of circumstances and keep you covered while you are in transition, moving, if you have items in storage, living with a friend or if you are traveling. It can be confusing to know if you should cancel your renters insurance or not. Here's how to know when to keep your renter's policy or when you should you cancel your renters insurance to save money and how to do it.
Some Reasons People Cancel Renter's Insurance
1. Moving in with someone else and don't think they need renters insurance anymore
2. Trying to cut costs in general
3. Moving from one place to another or traveling, and may think they don't need the insurance for a brief time, or think they will just get a new policy later.
Do You Really Need Renter's Insurance? Advantages to Keeping Renters Insurance.
- If you already have renter's insurance, you've been benefiting from having coverage for your personal liability worldwide, and for theft or damage to your personal property. Learn more about what renters insurance covers and how it works.
- Renters insurance also provides you with additional living expenses if you are living somewhere and due to a claim you can't live there while the property is being repaired ore rebuilt. Learn more about how additional expenses work here.
- If you have your home and car insured with the same company, you often get a discount for having the two together.
Should You Cancel Your Renter's Insurance When You Move?
You don't have to cancel renters insurance when you move, you can do an endorsement for a change of address. This will avoid paying a penalty for cancelling your policy, and will also provide the advantage of covering your personal things while you move from one place to another. It's not moving insurance, but in most cases it does still provide you with the coverage for fire and theft. Contact your insurance company to find out what kind of solutions they can offer you.
Will Renter's Insurance Cover Items in Storage?
Another advantage of renters insurance many people don't realize, is that if they will be temporarily living somewhere else, or travelling and they have items in storage for a brief period, your renters insurance company may be able to cover your items in storage. Each company will handle this differently, find out what they can do for you before you decide to cancel a policy.
Renter's Insurance When Traveling
If you will be travelling, renters insurance may be able to cover your liability and your personal items while you travel. Be sure and ask about this option before cancelling.
Cancelling Renters Insurance When You Move In With Someone
Do you need to cancel your renters insurance when you move in with someone? Before you cancel your policy you need to find out if their policy will cover you.
If you are getting married, then it is possible to add your new spouse to your policy, you do not need to cancel your policy, you can just add your spouse and do a change of address endorsement for your new location.
In the definition of insured, people like roommates are not covered in an insurance policy, so if you are moving in with friends, then be sure and check how you will be insured for your liability and personal belongings before you cancel a policy. You might be better off just changing the address on your policy to keep your coverage.
Tips When Moving Back In With Parents
If you are moving back in with your parents, you are a family member, so this may be a circumstance where cancelling your renters insurance makes sense. Based on your age and personal situation you may not be covered automatically. Have your parents contact their home insurance company and ask to have you covered specifically for personal contents, and for liability. The advantage of doing this is that it will allow you to maintain your insurance history, so that when you do go get insurance again, you could be eligible for discounts that could save you money.
Cancelling Renters Insurance When You Buy a House
If you buy a house, your renter insurance company can probably insure your house on a homeowner policy, so as a first time homeowner, you don't need to start all over again with a new insurance company. You may even get loyalty discounts or other advantages for having been previously insured.
How to Cancel a Renter's Insurance Policy
Cancelling your renters insurance is fairly straightforward. If you decide you want to cancel your insurance, this is how:
- Contact your insurance company and let them know you want to cancel your policy
- Find out what the penalty will be to cancel the insurance. Usually the penalty varies depending on how long the policy was active or how long is left in the term. Learn more in this article: How to Cancel Your Insurance and Not Worry About the Penalty.
- Provide the insurance company with a signed request to cancel the insurance. They might have a specific form for you to sign.
- Give your insurance company accurate contact and mailing information so they can send cancellation documents and any refund you may be entitled to.
Do You Need to Contact Your Insurance Company to Cancel a Renter's Policy on Renewal?
Insurance is a legal contract and depending on the terms and conditions with your insurance company, there may be a clause that automatically renews the insurance. The best way to cancel an insurance policy is to speak to the insurance company and make sure you have followed their procedure to cancel. If you do not, your policy may be canceled for non payment and this can have a negative impact on your insurance credit score. It is always best to speak with the insurance company to make sure your policy is cancelled the right way.