How Much Does Renters Insurance Cost?

Fran
Fran Majidi
September 22, 2020

You may be required to carry a renters insurance policy and are looking for the cheapest rates. First, it’s important to know why you’re being pushed to have it. And for those of you just looking into renters insurance out of curiosity, it’s a good thing that you are considering protecting yourself.

Many people wrongly assume that a landlord’s policy will protect them if something terrible happens, but that is just not true. Only a renter’s policy will cover you if you need to replace or repair your belongings, up to limits, if they are damaged or stolen. A landlord’s policy would not pay for your things, nor would it pay for lodgings if you have no choice but stay in a hotel, if your apartment became uninhabitable after a fire or other covered event.

The good news is that renters insurance is more affordable than home insurance, because it only covers your things, not the structure of a building. Another great fact is that your belongings are covered by renters insurance even when they are stolen out of a car or elsewhere, as long as they are catalogued in your home inventory. Did your bike get stolen? It’s covered by renters insurance.

How Much Does Renters Insurance Cost?

Renters insurance should run you anywhere between $11 and $40 a month, and much of that depends on the size of your place. You may be renting a small studio or a big house with several bathrooms and bathrooms. If you add riders, floaters and/or endorsements (see below for what these are), it will cost you a little more too.

The national average renters insurance policy costs about $350 a year, less than $30 a month. However, this is based on a policy with a $40,000 limit on coverage for personal property, $100,000 for liability protection and with a $1,000 deductible, which needs to be paid in order to get reimbursed for losses and/or repairs. If your valuables amount to more than $40,000 (and they easily can), you can select higher limits, but you’ll pay more each month and each year.

Compare Renters Insurance Quotes

It is important to note that renters insurance prices range according to where you live. You can get an accurate quote by entering your zip code here. Other factors that will affect your rate are your credit history and how much you want to cover.

For instance, you may want to raise property coverage to $60,000 or more, depending on what valuables you own and how much it would cost to replace your electronics, furniture and clothing. For a $60,000 limit, the national average rate with a $1000 deductible and $100,000 liability is less than $450 a year!

As a general rule, each time you raise your personal property coverage by $10,000, you can expect to pay anywhere between $15 and $20 more per month. Some people can go as high as $500,000 or $1,000,000 in protections, and it’s important that you do too, if you own many valuable belongings. Make sure you are covering what you have based on value, and with a matching inventory. It’s important to remember too that it is just as important to have sufficient liability protections as you do property protections, because with one lawsuit you can lose everything.

What About Jewelry or Furs? Do I Need an Endorsement?

You may be covered for all these things, depending on your coverage limits. But you also need to read the fine print. It’s not uncommon for some policies to specify a payout of $1,500 for a payout for stolen jewelry. If your policy states this, buy an endorsement for your valuables, instead of raising your property coverage limits. Endorsements are often called riders. If you’re insuring a piece of jewelry worth $60,000, it will cost you anywhere between $600 and $1100 a year.

The deductible works the same way with a rider. If you choose a higher deductible, you pay less each month, but you will have to pay the higher deductible to get reimbursed if the jewelry is stolen. Choose your deductible wisely.

What to Include in Your Home Inventory

- Detailed descriptions of each item of belonging

- Photographs/Videos

- Receipts with date, location, and amount of purchase

- Serial numbers, model type, and manufacturer

- Current monetary value of items, including any updates and appraisals

If you’re like most people, however, chances are you no longer have receipts. Instead, make sure to note the date of purchase, where the item was purchased and the purchase price or estimated price if you can’t remember.

What About Items in Storage?

You are covered by renters insurance for stuff you have in storage? Yes, you are generally covered up to 10% of your total personal property limits. If the value of your belongings exceeds 10% of your policy limits, it’s a good idea to buy insurance from the self-storage facility. Getting the Renters Insurance Rate You Want SmartFinancial will compare your rates with 200 insurers to find you coverage at the best value. Begin by entering your zip code below.

Get a Free Renters Insurance Quote.

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