How Much Is Renters Insurance?

How much does renters insurance cost? The short answer is — it depends on your policy. But most policies are extremely affordable. In fact, average renters insurance policies are often less than $15 a month. So for the cost of about three fancy coffees or one large pizza, you could get the coverage you need for your apartment or home.

There are several factors that can affect the price of your renters policy including:

  • Coverage limits
  • Location of residence
  • Property type
  • Deductible amount

Let’s break a few of them down.

Renters Insurance Cost Factors

To understand the cost of your renters insurance, it’s important to know how renters insurance protects you. For starters, having renters coverage helps cover the cost to replace your personal property in the event your belongings are damaged by a covered loss. It also offers liability coverage, which protects you if you’re responsible for injuries to guests or damage to your rental. And renters insurance provides loss of use coverage, which pays for additional living expenses if your place becomes uninhabitable after a covered loss. Don’t forget one of the best benefits of renters insurance — it protects you whether at home or away from it.

We’ve highlighted some questions below to help you learn what factors affect the cost of your renters insurance.

What are your coverage limits? Every renters insurance policy has standard coverage limits, which are the maximum amount your policy will pay in case you have a claim. Your personal property and liability coverage both offer protection up to two different dollar amounts.

However, there are options to expand your coverage limits and protect those extra special items you’ve worked hard to acquire that may have value above your limits. Perhaps you have expensive electronics or are concerned about injuries on your property — you’ll want to have your agent help you evaluate whether or not extra property or liability coverage may be needed should the unthinkable happen. Just remember that extending your coverage limits will impact the cost of your renters insurance premium.

Where is the location of your rental? The location of your rental may also affect your insurance rate. If your area is prone to natural disasters or crime, your renters insurance rate will probably be higher than an area that is relatively safer.

Are you renting a home or apartment? The structure that you’re renting also could play a role in the cost of your renters insurance. If you’re renting a home, duplex or condo, it’ll typically be more expensive to insure than an apartment since homes are more prone to theft.

Do I need replacement cost coverage? To ensure you can afford to replace the things you work so hard for, you’ll want to consider adding personal property replacement cost value coverage (RCV). This way, in the event of a covered loss, we’ll replace your property with new property of the same type, kind and quality and you won’t have to worry about paying more than your deductible to fully cover the damaged item. Here’s a closer look at how replacement cost value coverage protects you.

What is your renters insurance deductible? If you file a claim, your deductible is the amount you’ll pay before your insurance company steps in to cover any costs. For example, if your $1,000 TV is stolen and you have a $500 deductible, you’ll pay $500 towards a new TV and your insurer will cover the remaining amount.

A good rule of thumb to remember is the higher you set your deductible, the lower your premium will be. Vice versa, the lower your deductible, the higher your premium will be.

Optional Renters Insurance Coverages.

Like coverage limits, many renters insurance policies have the flexibility to be customized to fit your lifestyle. Ask yourself these questions to help you decide if you need additional coverage:

Do you own more than $1,500 in jewelry? Though your jewelry is covered by your personal property coverage, it’ll only be covered up to a certain amount and for the types of losses specifically listed in your policy. If you own expensive jewelry that’s worth $1,500 or more, consider adding jewelry insurance to make sure your valuables are properly protected. This way, you’ll be covered for a broader range of losses, like losing it, as well as having higher amounts of coverage. Here’s a closer look at how jewelry insurance works.

Are you concerned about identity theft? Identity theft isn’t something you can 100% prevent, but it is something you can plan for. Adding identity theft insurance is an inexpensive coverage that helps you through the restoration process after getting your identity stolen.

Do you have a pet? We offer a special add-on coverage that provides up to $1,000 for veterinarian or final expenses for your dog, cat, fish or bird as a result of a covered loss.

Do you run a business from your home or apartment rental? If you have a business that you run from the comfort of your rental, you’ll want to talk to your agent about what kind of coverage is needed to make sure everything you work so hard for is properly protected. An agent will help you determine whether your business qualifies as a small home based business or if you’ll need a more comprehensive commercial policy.

Discounts for Renters Insurance

Finally, insurance companies often offer discounts that can lower the average cost of your renters insurance. Many popular discounts are awarded for things like paperless billing, setting up automatic payments, buying multiple policies (such as bundling home and auto) from the same company, safety discounts, and even having smart home technology can help you save money on your renters insurance rates. It’s always best to check with your agent to make sure you’re taking advantage of every discount you qualify for.

The cost of renters insurance varies depending on your coverage and limites — that’s why it’s important to talk with your American Family agent to find the best policy for your belongings and your budget. Check out these renters FAQs to clear up more questions you may have about renters insurance.

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Related Topics: Renters