How much does renters insurance cost?
Renters insurance from ASI®, one of the carriers in Progressive’s network and a member of our family of businesses, cost an average of $10 to $23 per month in 2019. Renters’ insurance premiums are often less expensive than those for homeowners insurance and don’t fluctuate as much. If you combine your auto insurance with your renter’s insurance, you might be eligible for a discount.
Renters’ insurance cost information
Based on a 12-month policy’s worth of data that has been separated into monthly payments, ASI’s average renter’s insurance cost is calculated. Hawaii, Idaho, and Wyoming do not have a renters insurance program offered by ASI.
Please return often to this page as it is updated frequently. Renters’ insurance rates might change regularly, so it’s critical to pay close attention to the data source and the year while investigating average pricing. Any data that is more than a few years old could not be applicable anymore. Additionally, charges for a different insurer in our carrier network can differ.
It’s simple to overlook renters insurance. In contrast to auto insurance, it is not required by state law. Additionally, it can appear to be just another monthly bill that you’d prefer not to pay.
But you’ll need the greatest renters insurance if you want to safeguard your personal property against issues like fire and theft. You may be happy to learn that you can frequently acquire generous coverage for about $10 per month.
What is the price of renters insurance?
Renters’ insurance in the United States costs, on average, $125 a year for coverage of $15,000 in personal goods. This amounts to slightly above $10 each month.
According to Lemonade Insurance spokesman Yael Wissner-Levy, “Renters insurance is significantly less expensive than you think.” Renters insurance is your best line of defense against unforeseen events, such as having your phone stolen on the train or having your apartment flood because your neighbors forgot to turn off the water.
Additionally, renters insurance covers much more than vandalism and negligent neighbors. It also contains:
Liability protection. Your unintentional injuries and property damage to others are covered by personal liability insurance. Liability insurance can cover the costs of medical care if a visitor trips and falls in your flat, your child injures another child unintentionally on the playground, or your dog attacks someone in the dog park. This coverage pays for damage to a neighbor’s possessions if a kitchen fire spreads to their apartment. If you are sued as a result of an accident, liability insurance will also pay for your defense costs.
additional costs of living. Additional living expenses coverage, often known as loss of use, kicks in if a situation like a fire prevents you from residing in your flat. It offers compensation for extra costs that exceed your typical household expenses, such as money to assist pay for hotel rooms, dining out and storage.
Renters insurance could be a wise investment, whether you live in a luxurious rental home or a modest apartment. When compared to a homeowners insurance policy, renters insurance offers many of the same protections, such as personal property coverage, loss of use coverage, and liability coverage, but at a considerably cheaper cost. Its coverage includes unforeseen events such as fire, theft, vandalism, and more. Costs will vary based on the insurance company, as they do with any sort of insurance, but coverage is typically affordable, especially when compared to what you could have to pay out of pocket if something goes wrong.
How much is renters insurance?
maybe on your mind if you recently rented a new house or apartment.
In general, renters insurance is substantially less expensive than homeowners insurance. Renters’ insurance is typically estimated to cost $174 per year by the Insurance Information Institute (Triple-I). According to information from Quadrant Information Services, the typical cost of homeowners insurance in the U.S. is $1,383 per year for $250,000 in dwelling coverage. The reduced price is a result of renters insurance policies not covering the structure of your house or apartment like homeowners insurance does.
However, how much coverage you get will have a significant impact on how much your renter’s insurance policy will cost. A renters insurance policy’s personal property coverage, which covers items like clothing, furniture, and some devices, has a minimum available amount that varies from company to company. While some insurers only need a minimum coverage value of $20,000 to $25,000 for personal goods, others may have a minimum amount as low as $2,500. However, you want to be sure you have adequate coverage to replace your personal items should a loss occur, regardless of the minimal amount your property insurer requires.
The price you pay will also depend on the deductible you select, the quantity of your liability coverage, and any endorsements you add.
Renters’ insurance cost-affecting variables
You might feel more at ease selecting coverages to create a policy that suits your needs and budget if you are aware of the factors that influence the price of renters insurance.
Coverage amount and optional coverages
There are various common coverages included in renters insurance policies. Depending on your demands, you can frequently set greater or lower limits. The typical renters’ insurance options are:
- Personal property coverage, which protects your possessions like clothing and furniture, is the main benefit of a renters insurance policy.
- Loss of use insurance, often known as additional living expenses insurance, covers costs incurred when you are unable to dwell in your home as a result of a covered loss. These costs could include lodging costs or other short-term housing, laundry costs, or even pet boarding costs.
- Liability insurance: Liability insurance covers costs associated with visitor injuries that take place on your property and for which you are found to be at fault, as well as damage to other people’s property that you are at fault. Liability, however, might not cover harm done to your rental.
- Coverage for medical payments to others: This insurance policy is intended to assist in covering the medical costs associated with visitors who become ill while on your property. When a visitor is hurt but you are not held accountable for their medical costs, medical payments to others may be extended to assist with their expenditures.
You can also add optional coverage kinds, which will raise your premiums and your level of financial protection. Typical choices for coverage include:
- If your personal property is damaged or destroyed, you will be compensated for its replacement cost rather than its depreciated worth, according to this endorsement.
- The coverage for any goods specifically named on the policy is expanded if you have any high-value possessions, including as jewels, collectibles, or musical instruments. Scheduled personal property. It frequently has a lower deductible than the rest of your coverage, sometimes even zero.
- Coverage of electronics You may want to boost the electronic coverage on your policy if you own a pricey laptop or a high-end TV.
- Coverage for water and sewer backups: This insurance covers water damage to your possessions as a result of a backup in a sewer or drain line. Not every business gives tenants this choice.
- Identity theft coverage: As our world grows more digital, identity theft seems to happen more frequently. In the event that your identity is stolen, this endorsement may be able to cover some of the costs involved in recovering it.
- There are various additional optional coverage kinds, and every provider of renters insurance has a unique selection of endorsements. You can choose insurance that is suitable for your condition with the aid of a licensed insurance agent.
Deductible
You will be responsible for paying your deductible out of pocket if you submit a claim. The term “assumption of risk” refers to this. You are accepting — taking on — the duty of covering a portion of a claim. Your deductible affects your premium as a result.
In general, your premium will be lower the larger your policy deductible. The typical deductible for renters insurance coverage is $500, and for many insurers, this may be the lowest deductible you may select.
Your premium will probably be affected if you’ve previously made property claims. You are seen as having a higher likelihood of making claims in the future by an insurance provider, therefore they charge you a higher rate to account for the elevated risk.
Your new insurance provider will view your prior claims on your CLUE report, regardless of whether you previously resided in a different place, had a different insurer, or made a claim under a different policy type, such as a homeowner or condo policy. Your premium will typically only be impacted by claims made during the last five years, though this varies per company.
Related:
- What Is Collateral Insurance?
- What Is Franchise Insurance?
- What Is Sliding In Insurance?
- What Is Coercion In Insurance?
- What Is Ancillary Insurance?
- What is DBA Insurance?
How to reduce the cost of renters insurance
There are methods to economize even though renters insurance is often less expensive than homeowners insurance. Here are a few simple ways to cut prices, but keep in mind that it’s crucial to consider a company’s other qualities in addition to prices, such as customer service or claims management.
Bundle your other insurance policies
Consider consolidating your policies with one insurer if you have other coverage, such as auto or life insurance. Your insurance plans may all be eligible for a multi-policy discount as a result.
Choose a cash value policy
How your personal property is covered—at its depreciated value or its replacement cost—is the primary distinction between an actual cash value (ACV) policy and a replacement cost value (RCV) coverage. Because many of your possessions, like your TV and laptop, are probably more expensive to replace at market value, RCV plans typically cost more money. You receive less money for their replacement if you submit a claim because ACV policies pay for your belongings at their depreciated value, but you might also pay lower insurance rates.
Increase your deductible
Your renter’s insurance rate is influenced by your deductible sum. Your insurance premium will be higher the lower your deductible is. You might opt for a greater deductible if you want a less expensive renters policy, but make sure you could afford it in the event of a claim.
Install safety equipment
You can be eligible for a discount if you have safety and security devices like smoke detectors or a security system. Thieves may be deterred by security measures, while smoke alarms can warn you of potentially harmful circumstances. Some insurance can reward you with greater discounts if you take these preventative actions.
Adjust your payment method
You can receive a reduction from the insurers if you pay your annual premium in full, but you might also avoid having to handle another monthly statement or pay billing costs. To find out if this discount is an option, speak with your insurance.