The Cost of Renters Insurance

How much does renters insurance cost? Well, the short answer is — it depends on your policy. But most policies are extremely affordable — 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. Pretty good deal, don’t you think?

There are several factors that can affect the price of your renters policy. Let’s break a few of them down.

Customize Your Insurance Protection

Coverage limits. Every renters insurance policy has standard coverage limits, which are the maximum amount your policy will pay in case you’d have a claim. 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 coverage limits. Perhaps you have expensive electronics or sports equipment — you’ll want to have your agent help you evaluate whether or not extra coverage may be needed should the unthinkable happen. Just remember that extending your coverage limits will impact the cost of your policy.

Location. The location of your rental will definitely affect your insurance rate. If your area is prone to natural disasters or crime, your rate will probably be higher than an area that is relatively safer.

Optional coverages. Like coverage limits, many renters insurance policies have the flexibility to be customized to fit your lifestyle. Some questions to ask yourself which could help your agent decide if you need additional coverages and endorsements might be:

  • Do you own more than $1,500 in jewelry?
  • Are you concerned about Identity Theft?
  • Do you rent your apartment to others?
  • Do you have a pet?
  • Do you run a business from your home?

Discounts. Finally, insurance companies often offer perks for buying a renters policy in the form of discounts. There are a ton of different discounts, and they vary by insurance company. Many popular discounts are awarded for things like paperless billing, setting up automatic payments, buying multiple policies from the same company (called bundling in the insurance world), safety discounts, and even having smart home technology can help you save money. It’s always best to check with your agent to make sure you’re taking advantage of every discount you qualify for.

Remember, there is no definitive answer for determining the cost of renters insurance — 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 possible questions you may have about renters insurance.


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Related Topics: Renters