How Much Does Renter’s Insurance Cost?
A renter’s insurance policy is similar to a homeowner’s policy; however, unlike a homeowner’s policy where the entire home and land is protected in case of any damages, it will generally only cover the possessions within the home. Because of this, a renter’s insurance policy will cost significantly lower than a homeowner’s. The cost of these insurance policies will depend on the coverage value, geographical location, deductible, the type of home as well as other factors.
How much is renters insurance per month?
- On average, renter’s insurance cost is going to be anywhere from $10 to $25 per month for a policy that will cover $10,000 in belongings.
- Renter’s insurance that covers more than $25,000 in belongings can cost upwards of $55 to $120 per month depending upon the deductible.
- Another policy such as one that has $10,000 for property insurance, a $500 deductible, and liability coverage that is more than $100,000 can cost around $65 to $100 per month depending on the geographical location.
- An author noted in his USNews.com article that he pays around $100 per month for renter’s insurance on a Washington D.C. apartment.
- According to this RentersInsurance.com article, the typical renter’s insurance policy can run anywhere from $100 to as much as $500 per year.
Factors that influence the cost:
- Coverage: The more coverage that you want, the more that you’re going to have to pay. For instance, if you wanted to have $30,000 worth of coverage, it would cost a lot more than if you only wanted $5,000 in coverage. Select a coverage amount that you feel comfortable with. When choosing, think worst case scenario. If you were to lose everything, what would you want in return?
- Deductible: The higher your deductible, the less your premiums will be. Deductibles will usually start at $0 and go up in $500 increments. It can go as high as $1,500 or $2,000 depending on the company offering the policy.
- Risk: Before a policy is given, the insurance company will want to analyze the risk factor. They will adjust the premium based on the neighborhood, theft rate and other related factors. If that area has a lot of claims, there’s a good chance your premium will be high.
What are the extra costs?
- Additional items such as watercrafts, cars, and jewelry will have to have a separate policy.
- Other items that are rare such as antique paintings, trading cards, firearms, etc. may require a special appraisal and a separate policy. StateFarm.com has a list of items that have extra specifications.
What is going to be included?
- Depending on the insurance coverage, the policy holder will be liable for the deductible only. The insurance company will cover up to the maximum value coverage. For example, if a $10,000 policy with a $500 deductible was purchased, the policy holder would be responsible for the first $500 of damages. After the $500 had been paid, the insurance company would pick up the rest, up to $10,000.
- Insurance policies will usually include amounts such as $500, $1,000 and $2,000.
- A renter’s policy will cover any items that are within the policy guidelines. These items will be replaced with a cash value. Common items that are replaced include clothing, electronics, furniture, etc.
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What Renter’s Insurance Covers…
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Fire
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Ice, snow or sleet
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Smoke
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Sudden tearing
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Windstorm
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Theft
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Riot
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Falling Objects
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Vandalism
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Sudden water damage
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Freezing
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Tips to know:
- Take a close look at the belongings that you have within your home. For example, if you have $30,000 worth of items, it would be silly to get a $15,000 policy. Always make sure that you have sufficient coverage.
- Before you even sign up for a policy, be sure to write down an inventory. Take pictures and videos. You need to do whatever it takes to have as much evidence as possible. That way, if a problem does occur, you will have evidence to back up your claims.
How can I save money?
- Compare at least three quotes before signing up with an insurance company. Comparison websites online such as InsureMe can assist in finding the best quote in your area.
- If you already have an insurance policy with a company, ask them about rates since you may be able to get a discount for having multiple policies.
- Go with a higher deductible and consider your coverage. It is essential that you do not get too much coverage as this will increase the monthly premiums.
- Be sure to look at the personal property allowance. It’s best to jot down all of the items in your home that are worth something. You don’t want to cover too much nor do you want to cover too little. If you’re having a hard time with this, consider talking with an insurance agent.
- Discounts are commonly given to those that are either full time students or over a certain age such as 55.
How much did you spend?