Homeowners almost certainly have homeowners insurance. It’s just part of the deal that comes with purchasing a home. However, have you ever thought about renters insurance to cover the space you’re renting or leasing? While it’s not always mandatory to have, it’s a smart and inexpensive investment to budget for and purchase.
So, how much is renters insurance and why do you need it? We’re going to answer all of your questions and hopefully convince you to get your own renters insurance policy.
What is renters insurance and why do I need it?
Like any insurance policy, renters insurance is a way to financially safeguard yourself and your property from damage, loss or theft.
When homeowners buy homeowners insurance, they are protecting the home itself and the contents inside. While renters don’t own the building that they live in, they do have personal property inside of the apartment that has monetary value. Renters insurance is an insurance type specifically for those who rent or lease that will cover their assets.
Landlords or apartment owners will have insurance policies in place that protect and cover their buildings and physical property. But, it won’t cover the tenant’s personal belongings if something happens. That’s why renters insurance is something you’ll want to have. Here are a few scenarios where renters insurance would come in handy:
- Theft: If you experience a robbery or burglary, renters insurance would cover the cost of the stolen items
- Vandalism: If someone vandalizes your apartment, renters insurance would cover the damage and repairs
- Fire: If there is a house fire that damages the apartment, renters insurance covers the cost of loss
- Plumbing issues: If you have major plumbing issues that damage the apartment, you’d be covered
- Injuries that happen in your apartment: If someone else is hurt within your apartment, renters insurance covers their medical fees
These are some, not all, of the situations that renters insurance would cover. Keep in mind that renters insurance will cover a good variety of personal possessions, but it may not cover every single item in your place. It’s a good idea to know what is and isn’t covered and to protect yourself from the worst-case scenario as things happen to everyone, including renters.
How much is renters insurance?
Okay, so we’ve convinced you that renters insurance is a good idea, but you’re wondering how much renters insurance is per month? After all, if it’s a monthly expense you’ll need to budget for it. Good news — renters insurance cost is relatively inexpensive.
While there isn’t a flat rate for all renters insurance policies, generally, it costs $15 to $30 per month or up to $360 annually. When you think about the cost of everything you own— clothes, computers, TVs and tech — $30 a month isn’t too hefty a price to protect your possessions.
Depending on the insurance company, you can either pay monthly, bi-annually or annually. Sometimes, you’ll even get a discount if you pay for the full year in full, making the month-to-month cost even cheaper.
Factors that influence the cost of renters insurance
Renters insurance costs will vary by person, place and policy. If you’re considering purchasing a renters insurance policy, you can do some comparison shopping to make sure you’re getting the best bargain.
As you’re searching for a policy that fits your needs, here are a few things to keep in mind that’ll influence your cost:
Coverage types
The two most common types of renters insurance are personal property insurance and liability insurance. If you purchase a plan with both coverage types, you’ll pay more per month.
Personal property insurance
This type of plan covers your personal property and everything inside the apartment.
Liability insurance
This type of plan covers you if an injury happens to someone in your apartment and they file a claim against you.
Location
The cost of renters insurance varies by neighborhood, city and state. Generally, if the housing market itself is more expensive in a certain area, the cost of an insurance policy will probably be higher, too.
Pets
While dogs are man’s best friend, they aren’t when it comes to getting a renters insurance policy. Unfortunately, having a pet may increase the cost of your renters insurance policy because pets can cause additional damage to the apartment.
Previous claims
If you’ve had renters insurance in the past and filed several claims, your premium will likely be higher compared to people who have never filed claims.
Credit history
Credit is king and a higher credit score will equal lower monthly payments.
Coverage limits
With a renters insurance policy, you can choose how much coverage or protection you want. For example, let’s say you took inventory of your items and assessed that they added up to $10,000 worth of goods. You’d want to get a renters insurance policy with a coverage limit that was at least $10,000 to cover your losses. As your coverage limit increases, so will the cost of your monthly payment.
How do I find renters insurance?
Almost all insurance agencies will offer renters insurance policies. If you have car insurance or another type of insurance plan, you could bundle and save by adding an additional renters insurance policy.
You can get quotes from each of them to see where you’ll get the best deal. Here are a few insurance companies to consider when looking for a policy that fits your needs:
Secure your apartment with an insurance plan
You want to feel safe and secure in your apartment and know that you’re financially protected should something happen to your home.
Renters insurance is one way to secure your possessions and safeguard yourself from an emergency. At a relatively low cost, you can save yourself thousands of dollars and lots of stress in the worst-case scenario.
