You've paid on time, you haven't changed anything significant about your policy or where you are living, and yet when you open your renter's insurance bill this month, you see that the price has gone up. You are left baffled and asking why did my renters' insurance increase? This can be for various reasons, some of which may be dependent on you, but some of which are totally out of your control. There may not seem to be a rhyme or reason to your insurance prices, but there are a few. Renter's insurance can especially be pricey, and so it's always good to be aware of why your fees may be rising. There may even be some things you can do to offset the increased costs, even if you cannot affect the actual reason they are growing in the first place. Saving money is always a solid plan!
Reasons for an incrased premium
Starting with the reasons that are within your control, you can look to the obvious ones first. We can start by asking what affects the cost of renter's insurance? If you recently made a claim, that generally results in a price increase since the company now considers you a higher risk for claims. So, your premiums may rise for using the insurance you already pay for! If you increased the amount of coverage, this also naturally increases your renter's insurance price. There are other things you can do as well, like moving locations with the same insurance. A new place in a new neighborhood can cause insurance companies to re-evaluate the price of your existing premiums. If this is the case, you may also now be open to more markets for insurance, and it may be worth it to compare prices.
What about other causes?
Perhaps the answer to why your renters' insurance increased is totally outside of your control. The most frustrating of these may be that your insurance provider decided to raise prices. Increased operation costs or a desire for larger returns for investors could mean that the prices have increased across the board. There is no external reason. There could also be causes that are central to the operation of the business. If reserve funds used to pay out claims are low and need to be re-stocked, this could trigger an increase in prices to build back those reserves. This can be common in the event of a large-scale event that results in multiple large pay-outs. If this is the case, you may not have many options in front of you immediately, but it may mean that the increase is just temporary, which could be of some comfort!
what can you do?
Suppose you have already made sure you are not responsible for the increase in your insurance cost. In that case, you may be at the mercy of inevitable price increases. You can generally do things to keep the cost of your insurance low, even if the actual reasons for the cost increase are out of your control. This can sometimes come in the form of discounts. Lots of insurance companies offer discounts for security systems, sprinkler systems, and smoke detectors. This is not always an available option for renters, so you should look into your provider's specific values. You can also shop around regularly for insurance since the market is always trying to maintain competition. Renter’s insurance prices can vary significantly between providers and locations, so it’s worth it to look into alternative options.