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The average cost of renters insurance

The average cost of renters insurance

The average cost of a renters insurance policy is $ 14.90 per month or $ 179 per year.

But the price you pay for your policy varies depending on where you live and the amount of coverage.

In general, the more coverage you buy, the more expensive your insurance will be.

The average cost of renting insurance in the United States is about $ 14.90 per month, according to data from the Insurance Information Institute. The average renter can expect to pay around $ 179 per year for coverage.

It's a good idea to have renters insurance, as it protects you where your landlord's coverage doesn't. Your renters insurance protects all items that enter your new tenant's house or apartment, and your personal liability if something happens in your home for which you are responsible.

Although it will not help rebuild the structure if it catches fire, which is the purpose of homeowner's insurance, it will protect you and your property. Some landlords or rental companies will require renters insurance as a condition of the lease.

The type of home you live in will not play a big role in the safety of your tenants. A rented home will cost no more than a studio apartment, largely because this insurance policy covers you and your property. But the costs of renters insurance will vary depending on where you live and how much coverage you need.

How much is renters insurance in my state?

According to data from the Insurance Information Institute, the state and region you live in play a big role in how much you pay for renters insurance.

For example, states located in the southeast are the most affordable for insurance. Mississippi, Alabama, Louisiana, and Texas are some of the most expensive states to insure renters. They are also low-lying areas where floods and hurricanes are common. Insurance companies consider them higher risk and charge higher rates to insurance renters in these areas.

In contrast, South Dakota and Wisconsin have some of the lowest rental rates for insurance. These states have relatively calm weather patterns and are considered less dangerous.

Average renters insurance price by coverage amount

Generally, renters insurance policies cover only a certain amount. Policies generally start with coverage of $ 20,000 or $ 30,000.

While this may seem like more than what you need to replace your property, remember that renters insurance can also cover your liability, or the amount you might be liable for in a lawsuit. If something happens in your home, you may have to pay compensation.

The more coverage you get, the more you pay for coverage. Based on quotes obtained from Allstate, one of the best renters insurance options in 2021, for an apartment in New York City, the cost of renters insurance will increase by a few dollars a month with every $ 10,000 covered for personal property .

The more coverage you get, the more premiums you pay each month. To understand how much coverage you will need, you will need to calculate the total value of the items you own.

You can also consider the amount of risk associated with your home. For example, someone who rents a single-family home with an outdoor pool might want to consider how much additional coverage a college student could rent in a 600-square-foot studio off-campus.

Other Factors Affecting Renters Insurance Costs

Types of alarm systems installed in your home

A renters insurance company will look at many different aspects of your rental home, such as its age and construction. You'll also consider how your home can alert you to danger - installing a burglar alarm and fire alarm can reduce the chance of damage to your items in the first place and, by extension, the risks to your insurance company. Insurance companies often offer discounts to renters who use these types of alarms.

Dog ownership

Owning a dog may not directly increase the cost of your insurance, but owning a dog may mean you need more coverage.

If your dog does bite someone, renters insurance can help cover the costs. According to III, the average cost of claiming a dog bite was more than $ 44,000 in 2019. In this case, your insurance company might recommend more than $ 20,000 or $ 30,000, which makes renters insurance a bit more expensive every month.

How to get the best price on renters insurance

If you're looking for rental insurance, make sure you get the best rate by doing your research. Collect quotes from many different insurance companies and find the rate with the lowest monthly premium or cost of coverage and the highest maximum coverage. Also consider the deductible or the amount you will need to pay before your insurance coverage begins.

Please note that if you have roommates, renters insurance will not cover roommates, they need their own policies.

Perhaps the insurance policy with the most coverage, the lowest premiums, and the lowest deductible is the best policy for you.