Renters Insurance: Protection for the Price of a Pizza

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 $20 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.

Coverage Limits

Every renters insurance policy has standard coverage limits, which are the maximum amount your policy will pay should you have to make a claim. However, there are options to expand your coverage limits, depending on your lifestyle. Say you have an expensive comic book collection, and your coverage limit is set for $2,500. If you know your collection is worth more than that, you can extend your coverage limit so your entire collection is covered 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 is high-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. Standard renters insurance policies come with a set amount of diverse coverages, but offer the chance to add on coverages. For example, a standard renters policy may not cover your in-home daycare business, however, you would have the option to add on a business property coverage. Of course, adding these optional coverages affects the cost of your insurance policy.

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, etc. 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 get a quote from a few different companies. But with its general affordability, it’s always a good idea to have a renters policy — even if it’s just the basic plan!


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