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How Much Does Renters Insurance Cost?

Renters Insurance Cost

If you need to buy renters insurance, then you’re looking for answers to the question, how much does renters insurance cost? Generally speaking, renters insurance is relatively inexpensive when compared to home insurance. In fact, you can even get a discount if you bundle renters insurance with your auto insurance with some insurance companies. 

Before we get too deep into answering the question, how much does renters insurance cost, we should cover just what is renters insurance?

Well, renters insurance provides protection for your personal belongings in case of damage caused by fire, theft, or other covered perils. It also provides financial protection if someone is injured at your residence or sues you for negligence. In fact, it’s a common insurance protection when your rent apartments, condos, townhouses, and or other type of rental property.

How much does renters insurance cost?

Well, the average cost of renters insurance will vary from company-to-company. Each company has there own set of rates based on the customers loss experience. However, generally speaking, a renters policy should cost you between $25 – $180 per month. Who pays $25 and who will have to pay $180 will largely depend on a few different factors.

How much will it cost you?

Sure, we can discuss average costs, but that isn’t customized to your situation. For exact prices, you can get a renters insurance quote online or by calling us at (877) 334-7646.

Renters insurance price factors

The answer to the questions, how much does renters insurance cost actually lies in how it’s priced. The cost of renters insurance is impacted by various rating factors. Below are five (5) of the common factors that determine the cost of a renters insurance policy:

1 | Where is your home located

The zip code where you live can significantly influence your renters insurance rate. Insurance companies use zip code to determine rate because it’s a good indicator of future claims. For instance, some zip codes have higher crime rates, and therefore higher incidence of theft. Additionally, there are certain zip codes with higher risk climate and weather patterns, which can also influence how much renters insurance costs. This is similar to how home insurance premium are determined.

2 | The type of residence you rent

They type of residence you will rent may influence the cost of your renters insurance policy. For example, renting a single-family home may cost more than an apartment because theft frequently more common in homes than in apartments.

However, if you rent an apartment, bigger buildings may cost you less in renters insurance premiums. For most insurance companies, the average cost of renters insurance in a high-rise apartment complexes is generally lower than small rental community. This is because high-rises or larger complexes typically have a lower risk of theft and superior fire and security features.

3 | Insurance score or credit history

Depending on the state where you live and the company you buy your policy from, an insurance score may be used. Your insurance score is generally calculated from information obtained from your credit report. Credit data has proven predictive of future insurance claims, and is widely used in personal lines insurance pricing. While an insurance score is not the same as a credit score, there is enough correlation that a better credit score typically means a better insurance score.

4 | If you have dogs

Not all dogs will increase your premiums, but some breeds will raise your renters insurance premiums. Since you could be sued if your dog bites someone, certain breeds make insurance more expensive. Moreover, some breeds may actually disqualify you from coverage altogether.

5 | How much coverage you need

This is the most important thing that influences home much renters insurance costs. If you select higher coverage limits, you can expect to pay more in premiums. You can reduce the impact by selecting higher property insurance deductibles, which is the amount you pay out of pocket if you have a claim, but that will make the cost of a claim more expensive However, on  monthly basis a higher deductible will decrease the price of renters insurance. If you elect a higher deductible, make sure you have enough to cover the deductible in savings in the event of a property claim.

PRO TIP:

You can bundle your renters and auto insurance to earn a multi-policy discount. Learn more about bundling home and auto insurance.

Common renters insurance cost questions

Why is renters insurance less than home or condo insurance?

The primary reason is because renters insurance doesn’t cover the actual dwelling or it’s interior upgrades. This physical structure and interior upgrades are typically covered by your landlord’s insurance.

Can I insured high-value items and does that increase the cost?

Yes. However, the average limit renters typically select for personal property is $26,000. However, the amount you can insure is much higher than that, and will vary from company-to-company. The higher limit you select, however, means a higher premium. While it might be more expensive to insure a higher limit, you want to make sure you select enough limit to cover your personal belongings. Moreover, items like jewelry, firearms, art and silverware will have sub-limits. If you have expensive valuables, you’ll want to consider itemizing them on your policy if allowed, or to purchase a rider or personal article floater.

The bottom line

If you’re wondering about renters insurance cost, it’s because you likely need it. You should contact your insurance agent or company to see what works best for you. If you need answers right now, you can start a quote online, or you can speak with one of our agent at (877) 334-7646.

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Copyright IronPoint Insurance Services, LLC | California License No. 0G87821 | PO Box 62436, Irvine, CA 92602 | 877.334.7646

IronPoint Insurance Services, LLC is an independent insurance agency licensed (#0G87821) with the California Department of Insurance. We are authorized agents for many A+ rated Arizona, California, Colorado, Nevada and Utah insurance companies. We provide consumers with online, phone, and in-person insurance services through our insurance company relationships.

IronPoint Insurance Services, LLC offers multiple insurance quotes through ComparisonQuote.com to provide consumers several options for their insurance products. We offer auto insurance through Travelers Insurance Companies, Nationwide Insurance, Safeco Insurance, MetLife Auto & Home, and Progressive. We are authorized insurance agents for these companies and do not charge any fees for our services. If an IronPoint insurance agent tries to charge you broker or agency service fees for representing these companies, please contact us immediately.

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