What Does Renters Insurance Cost?


Statistics show that Rental Insurance Policies cost an average annual premium of $143 in the United States in 2011.   The cost of renters insurance will be different for each and every customer; there are many factors that play into calculating the rate.

Major Factors On Cost of Renters Insurance

  • Amount of Coverage Requested
  • Available Options of Coverage Needed
  • Geographic location of your Rental Unit
  • Deductible of Policy
  • Insurance Credit Score (Only applicable in Credit Scoring States)

How Much Coverage Is Needed?                         

In order to find out exactly what your Renters Insurance Policy will cost, you must first obtain a Renters Insurance Quote; but before getting a quotation, you need to figure out how much coverage you need. The Renters Insurance Policy will primarily include Personal Property Coverage and Personal Liability Coverage; there will also be some additional endorsements which you may desire. The Personal Property limit should be the limit of coverage required to replace all your contents (furniture, clothing, electronics and kitchenware); on the other hand, the Personal Liability limit would most probably be a choice of: $100,000, $300,000 or $500,000 per occurrence.

Replacement Cost Coverage It is essential to make sure that your Renters Insurance Policy will settle claims on a Replacement Cost Basis. The alternative would be Actual Cash Value; in which case, depreciation will be applied to personal property thus paying out substantially less in the event of a claim. This may be one of the most important endorsements on the policy.

How Does The Deductible Work? The Deductible is the amount the insurance company will deduct from a property claim settlement. A higher deductible will reduce the premium and a lower deductible will increase the premium. The deductible is not applicable to Liability Claims; thus if your primary goal for the policy is to provide liability protection, you may consider the highest available deductible thus producing the most affordable renters insurance premium.

Insurance companies charge higher rates in areas where more losses have occurred. It is expected to pay higher insurance premium in high crime areas where there may be more burglaries and more claims filed. Renters Insurance Policies are each unique, the coverage differs, the risk differs, the renter differs and the premium rate will be different.

How Much Will I Pay For Renters Insurance? In order to determine the cost of your renters insurance, you must get a Renters Insurance Quote; you may obtain a quote online. If you feel confident that you understand all the elements of the product, you may also purchase the policy online. For further assistance, you may wish to contact a company representative to assist you in the simple process and answer all your questions.