If I Have Renters Insurance And I’m Moving, Am I Out The Money?
No, you’re not out the money. What you’re looking for is the concept of earned premium versus unearned premium. While you pay the cost of your renters insurance in advance, that money is still “yours” even though it’s in the care and custody of the insurance company.
That applies right up until that money goes to pay for the coverage that’s provided. This occurs on a rolling basis. Unearned premium is money that you’ve tendered to the insurance company which is expected to cover the cost of insurance, but which has not yet done so. Earned premium is money that the insurance company has earned, and which is now no longer yours because it’s paid for the coverage provided.
It’s worth noting that there are certain circumstances that can lead to what’s called a minimum earned premium. You’ll most often find this in one of two forms. Either it’s money that essentially covers the cost of selling and issuing the policy initially, and per the insurance contract belongs to the insurance company because they’ve already done that work, or it’s money that is associated with very specific kinds of fees which are fully earned as soon as the policy is issued. Fees, fully earned or otherwise, are a subject for another article, such as the one we wrote recently on insurance policy fees.
Can I Move My Renters Insurance Policy With Me?
Yes, if you’re moving your renters insurance policy can come with you. Generally, moving with your policy is a simple matter of calling up your insurance provider and making sure they know the date and new location you’re moving to, as well as whether or not your new property manager needs to be listed on the policy.
Sometimes, there are areas that are not covered by certain underwriters, or that are just difficult to insure. Those are rare in Tennessee, but if you’re moving to one it’s likely that the unearned premium can be transferred to a new policy with another underwriter or refunded and you just buy the new policy.
Remember that there may be certain things that qualify as earned premium, so it may not be as simple as just dividing the annual cost of the policy by 365 and multiplying by the days you didn’t have it to calculate what’s coming back to the new policy.
Can I Move My Renters Insurance To Another State?
Sort of. If you’re moving to another state, the policy will need to be rewritten. That’s often with the same underwriter, so the process is pretty seamless. It will be a new policy, to comply with all the specifics of the new state, but you’ll be able to continue coverage without any interruption.
Unearned premium will, of course, transfer or be refunded in that instance. It really doesn’t take any longer to do this. A few days notice is sufficient to move a policy generally, but more is always better. It’s also helpful to have some lead time if a copy needs to go to your new leasing office. Fax machines are imperfect devices, and sometimes the new leasing office will want updated to the form they receive, as well.
Overall, it’s easy to transfer your Knoxville Renters Insurance to wherever it is that you’re going.
What If I’m Moving And I Don’t Want Renters Insurance Anymore?
That’s of course not the ideal choice. If you’re moving and buying a home, you’ll be considering homeowners insurance options. That’s a great time to talk to your insurance experts and see if they have suggestions for coverage for your new home. If you’re moving in with someone, make sure that you’re listed on a policy there, otherwise you won’t have coverage.
If you’re moving to a new apartment and they just don’t require renters insurance, you should consider the protection that it gives you. You don’t know what risks might be hiding behind the closed doors of your neighbors, and you don’t know if they carry enough liability coverage to make you whole if they start a fire. Besides, their liability would only pay you actual cash value rather than replacement cost, generally speaking.
If you truly don’t want the policy, you can certainly cancel it, and the unearned portion of the premium would be refunded back to you. That’s a last option for most people, though, because it’s easy to become used to the security that renters insurance provides. If you turn away from the stove for just a moment and it catches fire, who will pay for the damage to the apartment if you don’t have renters insurance.
It’s also worth remembering that renters insurance will defend you if someone thinks you’re liable for damages they suffer, even if it’s false, frivolous, or patently ridiculous. That alone is well worth the cost of the policy.
To find out more about renters insurance in Knoxville, reach out to the insurance experts for renters at Effective Coverage. With years of experience and the ability to point you to the specific parts of the policy document that answer you questions and to offer background to those answers, you’ll get the information you need and the coverage you deserve at a price you can afford.
It’s easy and fast to get Tennessee renters insurance, too. You can do it online in just sixty seconds, or you can call and spend as long as necessary getting all of your questions answered. That’s why we’re here for you.
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