A renter's insurance policy can adapt to a variety of circ*mstances. It can keep you covered while moving, living with a friend, traveling, or keeping items in storage. With so many uses for coverage, it can be confusing to know whether you can cancel renter's insurance or keep it. You might save money if you cancel renter's insurance, but are there risks to canceling your policy?
Key Takeaways
- Renter's insurance can keep you covered while moving, living with a friend, traveling, or keeping items in storage.
- Rather than canceling renters insurance when you move, add an endorsem*nt for a change of address.
- If you decide you want to cancel your renter's insurance, it's usually fairly straightforward. Call your insurance company and tell them you want to cancel; then, follow any additional steps.
Advantages of Keeping Renters Insurance
Even during periods of transition, there are several advantages to keeping your renter's insurance policy. In addition to protection against theft or damage, here are other reasons not to cancel your coverage:
- Worldwide coverage for personal liability, and theft or damage to your personal property
- Additional living expenses to cover living somewhere other than your home because of property renovation due to a claim
- Multi-policy discount on insurance if you also have your car insured with the same company
Renters Insurance When You Move
Rather than canceling renters insurance when you move, add an endorsem*nt for a change of address. This address change could save you money by avoiding the penalty for canceling your policy. Plus, it will provide insurance coverage for your things while you move from one place to another.
Renters insurance when you move is different from moving insurance. However, in most cases, it does still provide you with coverage for fire and theft. Contact your insurance company to determine what kind of solutions they can offer if you have an upcoming move planned.
Coverage for Items in Storage
Many people don't realize that renters insurance companies may be able to cover their items in storage. If you will be temporarily living somewhere else and want to store your things, you don't have to risk your furniture, collectibles, or other personal items. Each company will handle this differently, so review your policy coverage before you decide to cancel it.
Renters Insurance When Traveling
Renters insurance may cover your liability and your possessions while you travel, whether you keep your items in your home or put them in storage.
You may save money by canceling your renter's insurance, but be sure to ask about this option before you cancel. No matter how long you'll be away while traveling, you want to make sure your belongings are insured against theft or damage while you're gone.
What If You Live With Someone Else?
Should you cancel your renter's insurance when you move in with someone else? While you might think their policy will protect your belongings, not every company will.
Roommates might not be covered as "insured" in a renters insurance policy. Be sure to check how you will be insured for your liability and personal belongings before you cancel a policy if you move in with friends. You might be better off changing the address on your policy to keep your coverage.
If you are getting married, you can add your new spouse to your policy rather than canceling it altogether. A change of address endorsem*nt can insure your items if you move to a new location after marriage.
Tips When Moving Back in With Parents
If you are moving back in with your parents, you might be covered under their policy because you are a family member. Although canceling your renter's insurance might make sense in this instance, you may not be covered automatically based on your age and personal situation.
Ask your parents to contact their home insurance company and cover you specifically for personal contents and liability. This way, you will maintain your insurance history to qualify for money-saving discounts when you get your insurance again.
Canceling Renters Insurance When You Buy a House
If you buy a house, you no longer need renters insurance. Most companies that offer renters insurance also provide homeowner policies, so you don't need to start all over again with a new insurance company as a first-time homeowner. You may even get loyalty discounts or other advantages for having been previously insured if you stay with the same company.
How to Cancel a Renters Insurance Policy
Canceling your renter's insurance is fairly straightforward. If you decide you want to cancel your insurance, this is how to do it:
- 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. The penalty can vary based on how long the policy was active or how much time is left in the term.
- Provide the insurance company with a signed request to cancel the insurance. Ask if they have a specific form for you to sign or send a letter requesting the cancelation.
- Give your insurance company accurate contact and your mailing information to send you the cancellation documents and, in some cases, any refund you may have due.
Renters insurance is a legal contract and may contain a clause that automatically renews your policy. Rather than assuming your coverage will cancel at the end of the term, call the insurance company directly. Ask about their cancellation policy and make sure you follow their procedure.
If you do not, your policy may be canceled for non-payment, which can harm your insurance credit score. It is always best to speak with the insurance company to avoid consequences and make sure your policy is canceled the right way.
FAQs
In short, no. It might save money in the short term, but canceling your renters policy could cost you more in the long run. Without insurance coverage, you're putting yourself at high financial risk from property loss and personal liability.
Why is it bad to cancel renters insurance? ›
Terminating your policy because you just used it as a requirement for a lease could lead to non-compliance with your agreement. This could potentially result in the termination of your lease. Beyond this, you'll expose yourself to financial risks by not having renters insurance coverage.
Is renters insurance worth the money? ›
Yes. If you can afford it, renters insurance is usually worth it. It will protect your belongings, provide liability coverage, and may cover your personal items when you travel. Renter's insurance protects you from a long list of perils, as well.
How does renters insurance help you save money? ›
Renters insurance helps protect your personal belongings after theft or damage. It can also cover personal liability, accidental injury, and temporary displacement. In the event of a covered loss, your rental insurer will pay your claim, less the deductible.
Why is it bad to not have renters insurance? ›
If you don't have renters insurance, you risk losing your personal property, and your landlord's insurance will not cover your belongings inside the rental. Your personal belongings can only be covered if you purchase a renters insurance policy, which is one of the reasons why it is important to get it.
Why is renters insurance so important? ›
Renters insurance can help you repair or replace property after loss due to many types of damage or theft. It can also provide coverage for an accident at your residence. Policies usually have very affordable annual premiums.
Why would I want to cancel my insurance? ›
You may wish to cancel your insurance if you are a member of a household where another person has coverage and you can be added to their policy. This is most likely to be the case if you get married, but could also be appropriate for adult children moving back home.
What are the negatives of renters insurance? ›
Additional Expense. One of the main cons of getting renters insurance is that it can be an added expense for tenants already paying rent and other living expenses. This can be a deterrent for some tenants who may feel that they cannot afford the additional cost of a renters insurance policy.
How much is renters insurance ok? ›
The average cost of renters insurance is about $15 to $20 per month1. However, what you end up paying depends on a number of factors.
What is the most common amount for renters insurance? ›
What is the most common amount of renters insurance coverage? Renters insurance commonly covers around $30,000 in property damage and $100,000 in liability coverage.
Renters insurance is tax-deductible only when you are running a business from your apartment or rental home and you've set aside an area meant solely for work — similar to homeowners insurance tax deductions.
Why is renters insurance so expensive? ›
Factors That Impact Renters Insurance Rates. Your location, provider and coverage amount are the most prominent factors that determine your cost of coverage, but they aren't the only ones.
How often should you shop around for renter's insurance? ›
How often should you shop around for renters insurance? Like other types of insurance, renters insurance policies renew annually. Just before your policy renews each year is a good time to shop around and ensure you're still getting the most competitive price and that the policy features still suit your needs.
Why do landlords want you to have renters insurance? ›
Without a renters policy in place, damage or injury from a gathering gone wrong could be your responsibility. Renters insurance can help protect a landlord against tenant negligence. Tenant negligence can take many forms, ranging from a kitchen fire while cooking to water damage from an overflowing tub.
Is getting renters insurance worth it? ›
Even if your landlord doesn't require renters insurance, it's still a good idea. Without it, you'll have to pay out of pocket to replace belongings if stolen or damaged in covered problems, like a fire, and miss out on protection for accidental injuries or property damage to others.
How many people don't have renters insurance? ›
55%: 55% of renter-occupied homes across the United States have renters insurance. 45 million: Across the United States there are roughly 45 million renter-occupied homes. 25 million: Of the 45 million tenant occupied homes, more than 25 million of them have renters insurance.
Is it bad to cancel insurance? ›
Even if you aren't driving, you may risk fines or a license suspension if you own a registered vehicle but don't have insurance. Canceling your insurance will also lead to a lapse in car insurance coverage, which may mean higher rates in the future.
Can I cancel my renters insurance before moving out? ›
While you may be able to cancel the policy anytime, keeping it active until you're out of the space can ensure you're covered right up until moving day. If you're moving to another rental, you may be able to transfer the insurance to your new place instead of canceling.
Is it OK to cancel home insurance? ›
A policyholder can also initiate a home insurance cancellation. Perhaps you found a cheaper company or you have sold your home. You can call your agent or carrier to request that your policy be canceled on a specific date. You may need to sign a cancellation form to confirm your request.
Can I cancel renters insurance at any time Progressive? ›
To cancel a Progressive insurance policy, call (866) 416-2003 to speak with a customer service representative and arrange for the cancellation to take effect immediately or at a future date. You can't cancel Progressive insurance online, but you can cancel over the phone at any time.
