Average cost of renters insurance

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No matter if you live in a luxurious rental property or a cozy apartment,Renters insuranceThis could be a great purchase.As of 2018, the most recent year with available data, a renters insurance policy costs $179 per year, according to the Insurance Information Institute (Triple-I).Renters insurance offers many of the same protections as a homeowner’s policy.Homeowners insurancePolicy, including coverage for personal property, loss or liability, for renters of their homes.

You may be able to benefit from renters insurance in the event of an unexpected occurrence such as theft, fire, vandalism, and other unfortunate events. Renters insurance can be quite affordable, even though the cost of your policy will vary depending on where you live and what provider you choose. However, it is only $15 per month. This is compared to what you could lose if anything goes wrong.

Renters insurance: Average cost

You might be asking, “How much renters insurance costs if I just rented an apartment or a home?”

Renters insurance is usually cheaper than homeowners insurance. Renters insurance policies cost on average $179 per annum, while homeowners insurance costs $1,312 per annum for $250,000 of dwelling coverage. Renters insurance policies do not cover your home or apartment structure like homeowners insurance does, contributing to the lower premium.

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However, the cost of your renters insurance policy will depend largely on how much coverage you buy. Each company will have a different minimum amount of personal property coverage. This is the coverage that protects your clothing, furniture, and electronics. Some insurance companies have a minimum personal asset amount of $2,500 while others require coverage amounts between $20,000 and $25,000. However, no matter what the minimum coverage amount is required by your property insurance company, you should make sure that you have sufficient coverage to replace any personal property damaged.

How much you pay will depend on your liability coverage, the endorsements you add, and what deductible you choose.

Renters insurance costs are affected by several factors

You might feel more confident choosing the coverages that best suit your needs and budget.

Optional coverages and the amount of coverage

There are several coverage options available for renters insurance policies. You can choose to have higher or lower limits depending on your requirements. Common renters coverages include:

  • Personal property coverage:This policy covers the majority of your belongings like clothing, furniture and other personal property.
  • Loss of use coverage:Additional living expenses are also known as coverage for expenses that you incur while you are unable to live in your home because of a covered loss. These expenses could include hotel bills, temporary housing, laundry fees, and pet boarding fees.
  • Liability coverage:You are responsible for any injuries to guests that happen on your property. Your rental may not be covered by liability.
  • Coverage for medical payments to other people:The medical payments to others coverage helps to pay for guests who are injured while on your property. Medical payments to others may be available to cover medical expenses for guests who are injured but not legally liable.
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Optional coverages can be added to your financial protection or your premium. These are some of the most common optional coverages:

  • Cost of replacing contents:This endorsement will ensure that you are paid for the replacement costs of any personal property damaged or destroyed, not its depreciated values.
  • Scheduled personal property:This option extends coverage to any items that are high-value, such as jewelry, collectibles, or musical instruments. This option often has a lower deductible than the rest of your policy, sometimes even $0.
  • Electronics coverageYou may wish to expand the coverage of your policy if you own a high-end laptop or a TV.
  • Coverage for water and sewer backup:This insurance covers water damage to your belongings resulting from a sewer line or drain line backup. This option is not available from all companies.
  • Insurance coverage for identity theftAs the world becomes more digital, identity theft is increasing in frequency. If your identity is stolen, this endorsement may help you pay the cost of restoring it.
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Renters insurance companies offer a variety of additional coverages. An insurance agent licensed can help you select the right coverage for your needs.

Deductible

Your deductible is the amount you will have to pay out of your pocket if you file an insurance claim. This is known as the “assumption or risk” because you assume — or take on — the responsibility for paying a portion of a claim. Your premium will be affected by your deductible.

The deductible on your policy will generally affect your premium. Renters insurance policies often have a $500 deductible. With many insurers, this could be the lowest deductible you can choose.

History of Claims

Your premium may be affected if you have ever filed property claims. Insurance companies consider you more likely to file future claims and charge you a higher premium in order to compensate.

Even if you lived at a different location, had a different insurer or filed a claim under a different policy type, like a homeowners or condo policy, your new insurance company will see your past claims on your CLUE report. Your premium will be affected by claims made within the last five years, but this can vary from company to company.

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How to save money on renters insurance

Renters insurance is generally less expensive than homeowners insurance. However, there are still ways to save. These are the best ways to lower your renters insurance costs. But remember, not all renters insurance policies are equal.

Combine your other insurance policies

Bundling policies, such as life or auto insurance, could be a good idea. You might be eligible for multi-policy discounts on all your insurance policies.

Choose a cash value policy

There is a major difference between an actual cash worth (ACV) and a replacement value value (RCV). This is the way your personal property is protected — at its replacement cost or its depreciated price. RCV policies are generally more expensive because some of your personal property, such as your TV or laptop, will be more costly to replace at market price. ACV policies cover your items at their current market value. This means that you will receive less money to replace them if you file a claim, but you may also be subject to lower insurance premiums.

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Your deductible should be increased

A higher deductible usually means a lower premium. Be sure to select a deductible that you can afford to cover any claim.

Safety equipment should be installed

You may be eligible for a discount if you have security and safety equipment such as smoke detectors or security systems. Smoke alarms and security equipment can help you avoid theft and alert you to potentially dangerous situations. You might be rewarded by your insurer for taking preventive measures.

Modify your payment method

You may be eligible for a discount if you pay your annual premium in full. However, it could also help you avoid having to pay additional monthly bills or billing fees. Ask your insurer if you are eligible for this discount.

Check your personal property coverage limits

You can also control the amount of renters insurance that you want to cover for your personal property. Your premium will be reduced if you reduce the amount. You might want to think about whether you have enough coverage to replace your personal property.

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Questions frequently asked

Are you a renter?

Although renters insurance is not required by law, your landlord may require it. The landlord’s policy typically covers losses to the structure of the rental building. However, you are responsible for personal property damage and any injuries to guests. Some renters insurance companies even have additional coverage available for your pets.

Is it worth the extra cost for renters insurance?

According to Triple-I, renters insurance costs about $15 per month. This coverage can help you avoid financial stress in the event that your belongings are damaged, or you are held responsible for another person’s injuries or damage. Some policies include loss of use coverage, which covers temporary living expenses in the event that your rental becomes uninhabitable because of a covered claim. Renters insurance is a valuable part of financial planning to avoid having to pay out-of-pocket for unexpected events.

What is your renters insurance policy missing?

Renters insurance policies typically exclude damage resulting from earthquakes and floods. These events may be covered by riders or additional insurance policies. Talk to an insurance agent about the coverage options available. Some standard policies may exclude other scenarios like bed bug infestations and property damage by your roommate.

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Is renters insurance able to cover theft?

Standard renters insurance policies do cover theft. These losses may be covered by different policies. You can choose to have your belongings covered on an actual cash basis or replacement cost. This will lead to different payouts from the insurer. A standard policy may have limits on the amount of payouts you can receive if valuable items, such as jewelry, cash, or collectibles, are stolen. You can improve your protection by increasing your standard limits and scheduling high-value items.