Just like building your credit score, building your insurance score earlier can help build credit with insurers.
Younger individuals may not have the extra cash or understand the risks associated with owning, or even renting property. The earlier you obtain property insurance, the more likely you will benefit from lower premiums when you eventually purchase a home of your own.
Carrying tenants insurance or renters insurance when you move out of your parents' home, regardless of your living arrangement, will not only help build your insurance score, but it will also protect your personal belongings.
Damage or theft of your belongings can be devastating for a university or college student. Especially more expensive items such as a laptop, bicycle, or musical instruments.
In addition to insuring your personal belongings, tenants insurance also carries liability insurance coverage. This will be helpful in the event of damage related to bodily injury and/or lawsuits. Some examples include dog bites, slips and falls, and intoxicated guests.
Carrying tenants insurance or renters insurance builds your “insurance score” because it shows insurance companies that you have had continuous property insurance and essentially you are earning their trust. Some discounts that you are likely to benefit from later on are claims free discounts, loyalty discounts, and stability discounts.
Since homeowners insurance is more expensive because you are also insuring the building itself, these discounts can be very helpful to keep your homeowners insurance premium lower when you eventually purchase your first home.