What to Do if You Can’t Afford Renters Insurance

1. Read Over Your Rental Agreement

The first step to take if you can't afford renters insurance is to know what coverage, if any, your lease requires. Tenants aren't legally required to have renters insurance in the United States, but landlords can make renters insurance a mandatory condition of your lease.

Double-check your rental agreement to see if renters insurance coverage is a requirement and how much protection you need. If renters insurance isn't required, you may be able to hold off on coverage or pause your existing coverage until you're able to afford a policy.

2. Communicate With Your Landlord

When renters insurance is required by your landlord, a lapse in coverage could put you in violation of your lease terms. So it's important to talk to your landlord right away if you're having trouble paying your premium or don't have the cash to renew your policy.

You may be able to negotiate a temporary grace period or work out alternative arrangements until you can afford coverage again. Minimum coverage requirements also vary widely by landlord. So if you're paying for a policy that's above the minimum needed, you could potentially downgrade to a cheaper option.

Tip: Some landlords, like larger property management companies, may also offer renters insurance directly to tenants at affordable rates. Switching to this type of coverage might be cheaper than buying your policy on your own.

3. Shop Around for Lower Rates

Shopping around can help you find the best rate. Getting quotes is free and you're under no obligation to buy. You can compare quotes by calling insurance companies, getting quotes online or reaching out to independent agents and brokers.

Checking rates can help you reduce the cost of renters insurance—even if you already have coverage with another provider. And with renters insurance, you can switch insurers at any time if you find a more competitive rate. Just remember to make sure your new policy is active before canceling your current coverage.

Learn more: Ways to Reduce the Cost of Your Renters Insurance

4. Ask About Discounts

You may be able to qualify for discounts on renters insurance. If you have coverage already, check with your insurer to see if there are any discounts you may be eligible for. For instance, existing auto insurance policyholders may be able to save by bundling renters insurance with car insurance.

Discounts may also be available if the property has certain safety features, including smoke detectors, sprinkler systems, deadbolt locks, security cameras and alarm systems. If your rental home doesn't have these features, ask your landlord if they'd be willing to install them.

5. Downgrade Your Coverage Limits

Paying for a renters insurance policy that has more coverage than you need may not be necessary—especially if your budget is tight. Talk to your insurance agent to see how changing coverage amounts may affect your premium, or look at lower coverage amounts if you're getting quotes on a new policy.

While you don't want to skimp on coverage, you may be able to save a bit by opting for lower policy limits. Just be sure you still have a policy that's adequate enough to meet your landlord's requirements and ideally replace all of your personal belongings. If that's not an affordable option, reduce your coverage for as little time as possible.

Learn more: How Much Renters Insurance Do I Need?

6. Adjust Your Deductible

Policies with higher deductibles tend to cost less than policies with lower deductibles. So raising your deductible could help make renters insurance premiums more affordable. But it's important to weigh the benefit of saving on your premium with potential out-of-pocket costs you may have should you have to file a claim in the future.

7. Improve Your Credit Score

Good credit may help you qualify for lower rates on renters insurance. Many states allow insurance companies to use a credit-based insurance score when you apply for coverage. The score used during this type of credit check differs from your consumer credit score, but both are calculated using information from your credit report.

Taking steps to boost your credit score, such as paying your bills on time and keeping credit card balances low, could potentially help you lower your renters insurance premium.

Learn more: How to Improve Your Credit Score

Frequently Asked Questions

The Bottom Line

Renters insurance is typically reasonably priced and can protect your financial health if the unexpected happens. And it may be a required condition of your rental agreement. If you're unable to cover the cost of your premium, you may have options to lower your rate, from changing your coverage amount to raising your deductible.

Having strong credit could also help you save money. You can check your FICO^® Score^Θ and credit report for free from Experian to get an idea of where you stand.