Renter’s insurance is a smart investment for tenants to protect their belongings against unexpected mishaps.
It is usually purchased by the tenant, and not by the landlord. Some landlords may require proof of renters insurance before. Depending on where you live, your renter’s history, and additional financial factors, the price of the renter’s insurance can vary.
Renter’s insurance is not mandatory in most states, but it is highly recommended. Today, we’ll answer the important question of “how much is renter’s insurance?” and give you a great resource for getting the most affordable plan and cheapest renters insurance.
What is Renter’s Insurance?
Renters insurance is insurance that provides coverage for your personal belongings in the event that they are damaged or stolen. It is a lot like homeowners’ insurance, with a few key differences. As it sounds, renter’s insurance covers individuals who are leasing but do not own property. Not all renters are required to have it, but some landlords require their tenants to be insured.
In the case of a leaky faucet or maintenance issue, a leasing agency will likely repair the issue. But if a natural disaster occurs and destroys your belongings, neither your landlord
nor their insurance will protect you. The main purpose of renters insurance is to protect personal property and valuable items from unexpected events that may take place in a rental property, including:
- Fires (as the result of smoke alarms does not work).
- Smoke.
- Lightning damage and storms.
- Flooding.
- Theft.
- Vandalism and riot damage.
- Electrical issues.
- Explosions.
- Vehicle or aircraft accidents.
- Other random chance events or natural disasters.
- Water damage and water leak damage.
- Damage to electronics.
In the case of mishaps, the renter’s insurance will cover the replacement of personal property. Depending on the plan and the amount of coverage, additional protection may be included.
Most plans include liability coverage, which protects against accidental events that may hurt or harm an individual. If a guest at your rental property is seriously hurt in an accident, personal liability would cover their medical payments.
Other tiers of renter’s insurance plans cover additional living expenses (the price of hotel bills for the duration of your repair) in the event of natural disasters or serious accidents.
How Much Does Renter’s Insurance Cost?
Luckily, renter’s insurance does not cost that much on average. It is a smart investment because it costs much less than other insurance plans but can also cover a lot in case of an emergency. Some renters insurance policies may also include additional coverage for things such as medical bills, loss of use, and, personal liability.
The national average for renter’s insurance in the United States is $182 annually (with personal property coverage ranging from $26,000 and $31,999), according to the
National Association of Insurance Commissioners. That comes out to just about $15 per month, not a costly investment.
Location Can Impact Your Renter’s Insurance Rates
Although the national average is low, the average cost of renters insurance varies considerably from state to state, even from county to county. Surprisingly, renter’s insurance is not always the most expensive in places with high costs of living, like expensive states and populous cities.
In fact, renter’s insurance does not follow the price trends of a lot of other types of insurance. Some of the most expensive states have low or around
average insurance costs:
- Hawaii: $171 per year.
- California: $180 per year.
- District of Columbia: $163 per year.
- New York: $153 per year.
- Oregon: $154 per year.
Other states with lower costs of living have surprisingly high average rates for renters insurance:
- Mississippi: $297 per year.
- Arkansas: $231 per year.
- Oklahoma: $251 per year.
- Georgia: $256 per year.
- Alabama: $249 per year.
Renter’s insurance rates vary based on a number of other factors.
Look up your zip code
here to see estimates of how renter’s insurance rates generally run in your area. Compare these figures and also pay attention to what insurance companies offer the lowest ones near you. With those steps, you can find affordable renters insurance that suits you the most.
What Else Can Impact the Price?
There are several factors that can impact the price or cost of renters insurance.
Amount of Coverage
The coverage amount is very important but also varies to the individual’s desires and worries. Renters insurance has a coverage limit. Most basic plans cover personal property damage and replacement. As outlined earlier, there is also liability coverage and additional living expenses coverage.
Liability coverage is essential if you host often because it protects your guests. If you live in an area where natural disasters are common, you may want to spend extra on additional living expenses coverage. Extended hotel stays are rare but costly burdens.
Dog Ownership
All types of pet ownership can affect your renters insurance rates, the common one is
dog ownership. Dog or any pet owners typically pay more for their premiums because of the increased likelihood that personal injuries or damage may occur.
Pets can cause damage to the property or to the tenant‘s belongings, and this may lead to a higher premium for renters insurance.
Apartment Infrastructure
Depending on how your landlord has maintained your property and what type of security features it has, your premiums can change. Generally, apartment buildings with safe and sound infrastructure will award you with standard to low renters insurance rates. These safety features include things like smoke detectors, security cameras, burglar alarms, and locks.
Not only your apartment infrastructure but also the infrastructure of the city or town you live in can affect the price of renters insurance.
Apartment complex with security systems and well–lit areas are typically less risky for insurers, and, as a result, may be less expensive to insure. Conversely, living in a city with a high crime rate or in a neighborhood with a high number of fires may lead to a higher renters insurance premium.
Your Deductible
While premiums are harder for you to control as an individual, renters insurance deductibles are more flexible. Deductibles are the decided amount that you must pay yearly before your insurance company will take over and assume the cost of whatever damage has been done.
Usually, you can dictate the value of your deductible, but it will also influence the monthly premium you pay per your insurance policy. Low deductibles mean higher premiums and vice versa. It depends on your comfort level and financial situation.
Insurance Company
Different private insurance companies offer different rates. It is important to shop around and ask for renters insurance costs before buying insurance for this reason. Always compare renters insurance companies, their rates, and premiums, and get different renters insurance quotes before deciding on one. It should be free of charge and could save you plenty in the long run.
Bundling
Multi-policy plans are another way to save money. If you already have one insurance policy established with a company, for something like auto insurance or health insurance, you can save by purchasing multiple types of insurance from them. Consider combining your renter’s insurance with, say, your car insurance from State Farm if you already have a plan with them. This is an easy way to both keep track of your different payments and save money while doing so.
Tips for Reducing Costs
While rates are generally low, your individual premium can differ based on a lot of factors. This is where your credit score can come into play. For those with bad credit, the monthly cost of your renter’s insurance (premiums) will probably be high. Premiums are the amount you pay-out- of pocket monthly to maintain your renters’ insurance policy.
Another factor that can increase your premium is a history of past renters insurance claims. Unfortunately, this can negatively impact the lender’s trust, even if you have a good credit score. Of course, the cost of your premium depends on your provider and a specific plan.
Get Quotes
There are several steps you can take to improve your renter’s insurance costs and overall financial health. The first step is to get renter’s insurance quotes, and Shiirs is here to help.
Click here to search for policy quotes in your area!
