If you live in a small town — for example, an apartment in Eugene, Oregon — you may be concerned about the costs of moving to a big metropolitan area. Will your apartment rent be higher? Will food cost more?
You’re probably already anticipating that your car insurance may go up because insurance underwriters perceive that in a big city your car may be more at risk for theft and damage, but does the same thing apply to your renters insurance cost? If you move to New York City, will your rates double or triple from what they are now? While renters insurance is typically slightly more expensive in cities, the increase may not be as signficant as you’d think.
Renters insurance cost
While you might have expected that New York City renters insurance rates would naturally be much higher than in Portage, Wisconsin, the truth is that the highest U.S. renters insurance rates are in Mississippi and Louisiana, while the least expensive premiums are in North and South Dakota.
Renters insurance rates are based on a number of factors, including the type of coverage you have. The amount of belongings you have and the cost to replace those belongings will play a large role in determining your annual renters insurance rates. While where you’re living is a factor as well, it’s certainly not the only one.
It’s important to research the top renters insurance companies and to check rates with multiple insurers before buying coverage in your new city. In addition to renters insurance cost, however, there are some things to consider before you move.
Inform your current renters insurance company
After moving, you’ll either use a new insurance company, or if you like your current company, you may choose to stay with them. Either way, you need to inform the company before you move. If you’ll be using a new company, you need to tell your present insurer the date you’re leaving so you’re not charged for coverage you no longer need. If you’re going to stick with your current company, you may need a new policy anyway, so be sure to communicate your plans to your company or agent.
Don’t automatically assume you’re covered for pet damage. In fact, if you don’t have a pet now, your policy may specifically state that animal damage is not covered. If you plan to get a pet, though, remember to contact your insurer and buy whatever coverage is necessary, because it’s sometimes not included unless you request it.
If you live in a landlocked and flood-proof area now, you may not have considered flood insurance before. However, if you’re now moving to an area prone to flooding, make sure you purchase the correct coverage from the proper source. While renters insurance typically covers water damage, this coverage isn’t for water damage caused by weather-related issues. You’ll need a flood insurance policy to protect your belongings in the event they’re damaged in a flood.
Sure, renters insurance cost typically differs by city, but it’s probably not enough to take a huge chunk out of your budget. So, if you’re saving for a contract for deed home purchase in a smaller town in Minnesota, you should be just fine.
But you don’t want to find yourself in a situation where you’re under or uninsured in the event of a claim. So as you’re planning your move, make sure to research the best renters insurance companies according to consumers.
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