Learn The Ins And Outs About The Cost And Types Of Renters Insurance Coverage
If youre a renter, youre used to kicking back while your landlord handles any problems that pop up in your home. Ah, the good life! Now for the reality check: Your personal belongings are your responsibility. If a fire destroys your valuables, or if youre robbed, youre on your own. Unless, that is, you have renters insurance.
But what should you expect to spend to protect your stuff? Weve got answers.
What Is The Difference Between Renters Insurance And Homeowners Insurance
When looking at homeowners insurance vs. renters insurance, the main difference is that homeowners insurance covers a lot more .
Homeowners insurance includes dwelling coverage, which covers the house and other structures on the property like garages, decks, porches and fences. If your house burns down, dwelling coverage will pay to rebuild the house and structures.
Renters Insurance does not include dwelling coverage. Your landlord is financially responsible for damage to the building. The landlords insurance covers the building structure.
Both homeowners and renters insurance include personal property coverage for your belongings, liability protection and coverage for additional living expenses if need to move out temporarily due to damage.
How Much Does Renters Insurance Cost Per Month
The cost of renters insurance depends on various factors, including the value of your personal property, where you live and how much coverage you buy. Some of the most affordable renters insurance policies cost only a few dollars a month. The national average for renters insurance with $20,000 in personal property coverage is $13 per month.
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Who Has The Cheapest Renters Insurance
Nationally, Chubb has the cheapest renters insurance for $15,000 in personal property coverage, according to a Forbes Advisor analysis of renters insurance companies. State Farm offers the cheapest rates for policies with $30,000 or $50,000 in personal property coverage.
But the company offering the cheapest renters insurance in your state may vary. For example, in California, CIG has the cheapest renters insurance rate for a policy with $15,000 in personal property coverage. In Florida, Citizens, which is the states insurer of last resort, offers the cheapest coverage. In New York, its Utica National for $15,000 coverage, but New York Central Mutual Fire for $30,000 coverage and $50,000 coverage.
What Are The Main Factors That Affect How Much Home Insurance Costs
The three main factors that affect home insurance cost are your home’s location, how much it’s insured for and how susceptible it is to damage. For example, a home located along the coast would have higher insurance costs than one that’s inland, and a home made with expensive or fragile materials costs more to insure than one made with more affordable or sturdy materials.
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Not Required But Recommended
Even though renters insurance is not required by all landlords, it can be a good idea to carry a policy big enough to replace your belongings or protect you against paying out of pocket in a liability suit. Making a smart choice to protect your rental can pay off if there’s ever an accident or damaging event.
It’s not the only good choice you can make as a renter. You may also want to consider adding your eligible rent payment to Experian Boost®ø. Using Boost, you could improve your credit score just by paying your rent on time.
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Resources
How Much Renters Insurance Should A Landlord Require
- How Much Renters Insurance Should a Landlord Require?
While it may be a selfish train of thought, requiring your tenants to secure and keep renters insurance through the duration of their lease can help you out as well. If they suffer a covered peril that damages some or all of their belongings, they may not have the extra money to replace them on their own.
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Tips For Buying Renters Insurance
How Can I Find The Cheapest Renters Insurance
Finding the cheapest renters insurance will never boil down to one provider. Though some insurers have more affordable base rates than others, the lowest-costing renters policy will depend on the personal specifications of your plan. To find the cheapest coverage based on your needs, we recommend comparing at least three renters insurance quotes with any reputable carriers that pique your interest. Consider some of the low-cost options highlighted in our cheapest renters insurance round-up.
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How Does Renters Insurance Protect Me
Insurance companies call an event or circumstance that can cause personal injury or property damage a peril. Insurance companies don’t cover all perils there are usually some exclusions, meaning insurance doesn’t kick in for all sources of damage. Here are some of the most commonly included and excluded renters insurance perils.
| Typical inclusions |
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Are You Concerned About Identity Theft
Identity theft isnt something you can 100% prevent, but it is something you can plan for. Adding identity theft insurance is an inexpensive coverage that helps you through the restoration process after getting your identity stolen. It can help cover expenses such as legal fees, loan reapplication fees, notary expenses and lost wages due to time taken from work to restore your credit.
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Do I Need Renters Insurance If My Belongings Aren’t Worth Very Much
Even your smallest items, like your clothes, linens and cookware, could add up if you had to replace them all at once. Plus, renters insurance can help provide coverage if your belongings are stolen while they’re away from your place, such as in a storage unit or your car.
Renters or tenant insurance can also provide liability coverage if, for example, you accidentally cause a kitchen fire and are financially responsible for repairs. Additional living expense coverage, which also comes with a standard renters policy, can help pay for increased living costs, such as hotel stays, if the home you rent is uninhabitable after a fire or other covered risk.
How Much Is Renters Insurance For An Apartment
The average cost of renters insurance for an apartment is $29 a month, or $347 a year. There are a few things that affect your rates, including:
- Where you live. Some areas have higher rates due to weather or crime rates.
- Coverage level. The amount of coverage you buy will affect what you pay.
- Your deductible. The higher your deductible the lower your rate will be.
- Riders and endorsements. Some personal property, like jewelry or art, requires a rider that increases your renters insurance premium.
- Your insurance company. Rates can vary a lot by company, so it pays to shop around.
- Your credit history. Insurance companies also take into account your credit history, and it can affect how much you pay.
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How Much Does Renters Insurance Cost
How much you pay for renters insurance depends on how much coverage you choose to buy and what deductibles you select. The good news is, a renters insurance policy from GEICO can cost as little as $12 per month! Our personal property calculator can help you customize your renters insurance policy with what works for your situation. You can also create a virtual inventory list using our Personal Property Scanner in GEICO Mobile. Then, check out how you much you can save with discounts!
Bundle and save with renters and auto insurance.
See how much you could save when you combine renters insurance with your GEICO Auto Insurance policy. Check out our Multi-Policy Discount page for all the ways you could bundle and save.
Home Security Systems
If you live in a building with security staff or if you installed a burglar alarm on the property, your wallet could feel more secure with another discount.
Sprinklers or Smoke Alarms
Whether you rent an apartment, condominium, or house, smoke alarms save lives and could save you money with a discount on renters insurance. Same goes for fire extinguishers.
Double Check Your Policy For Additional Living Expense Coverage
If you live in an area where there are natural disasters like fires or severe thunderstorms, it could be important that your policy includes enough insurance for Additional Living Expenses . Additional living expenses include paying for a hotel, eating at restaurants and other expenses from having to live away from your rental home while it is being repaired.
Insurers will pay the difference between your regular living expenses and your added living expenses from being displaced after a covered event, but they may only do so for a limited time. Read the fine print to make sure you have enough coverage for any anticipated future disaster. Also, consider checking that your insurance covers things like floods because not all policies cover every type of natural disaster. Flood damage is usually excluded from standard renters insurance policies, but may be purchased either through your provider or directly from the National Flood Insurance Program .
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Managing Your Renters Insurance Policy Is Easy
GEICO Agents
Meet with a local agent to learn more about renters insurance and personalizing your policy.
Policy Service and Claims
You can directly , or contact the GEICO Insurance Agency partner for help with:
- Additional policy info
Additional Coverage
Riders and endorsements are “add-ons” to an insurance policy, providing extra protection for certain items. Check out the additional types of coverage that may benefit you and other handy tips on our Renters Resource Guide.
How Can You Get Discounts On Renters Insurance
You can lower your insurance rate by increasing the number of safety and security features in your home. Many renters insurance companies offer discounts if you have one or more of the following features in your home:
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Local fire/smoke alarms
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Central fire/smoke alarms
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Automatic sprinklers
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Local burglar alarm
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Central burglar alarm
An insurance company may also offer discounts if you bundle your renters insurance plan with another insurance plan, like auto insurance, or if you pay your annual premium at once instead of monthly.
Another huge way to save: increase your credit score. This one takes time, but as your score gets higher, you can get better renters insurance rates.
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How Much Is Renters Insurance
Allstate® renters insurance is not only reliable, but it’s also affordable and can cost you less than you think.
An Allstate renters policy has an average monthly premium of about $16¹. If you also insure your car with Allstate you may be able to pay as little as $4* a month.
Not only does renters insurance cover your belongings, it also typically includes a few types of coverages such as family liability coverage, additional living expenses, and guest medical protection.
When you buy a renters insurance policy from Allstate, youll gain the peace of mind that comes with knowing you have quality coverage from a brand you can trust.
How Does A Deductible Affect The Cost Of Renters Insurance
If you file a claim, your deductible is the amount youll pay before your insurance company steps in to cover any additional costs. For example, if your $1,000 TV is stolen and you have a $500 deductible, youll pay $500 towards a new TV and your insurer will cover the remaining amount.
Your deductible factors into your renters insurance cost because the higher you set your deductible, the lower your premium will be. And vice versa the lower your deductible, the higher your premium will be. Find out more about renters insurance and theft.
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Average Cost Of Renters Insurance
If you have recently rented a new home or apartment, you might be wondering, How much is renters insurance?
Renters insurance is generally much cheaper than homeowners insurance. The Insurance Information Institute estimates that a renters insurance policy costs $174 per year on average. Comparatively, the average price of homeowners insurance in the U.S. is $1,383 per year for $250,000 in dwelling coverage, according to data from Quadrant Information Services. Renters insurance policies do not cover your home or apartment structure like homeowners insurance does, contributing to the lower premium.
However, the cost of your renters insurance policy will depend largely on how much coverage you buy. The minimum available amount of personal property coverage the part of a renters insurance policy that covers your belongings like your clothing, furniture and some electronics varies by company. Some insurers have a minimum personal property amount as low as $2,500, whereas others may require a minimum coverage amount of $20,000 to $25,000. However, regardless of the minimum amount required by your property insurer, you want to make sure you have enough coverage to replace your personal property should a loss occur.
Your liability coverage amount, any endorsements that you add and the deductible you choose will also affect how much you pay.
How Much Is Renters Insurance In Your City
We analyzed rates of top renters insurance companies for over 90 of the largest cities in the U.S. and found Durham, North Carolina, to be the cheapest overall. Average renters insurance costs in Durham are:
- $59 a year for $15,000 in personal property coverage
- $90 a year for $30,000 in personal property coverage
- $133 a year for $50,000 in personal property coverage
The most expensive cities were Detroit and New Orleans:
- Detroit: $219 a year for $15,000 in personal property coverage
- New Orleans: $298 a year for $30,000 in personal property coverage
- New Orleans: $415 a year for $50,000 in personal property coverage
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Determine Your Desired Deductible
The deductible of your renters insurance policy is that amount that you would be responsible for paying before the insurance company covers the rest of the cost. For example, if you have a $500 deductible and you filed a claim for damage from a fire, you would pay $500 towards the repair and the insurance company would pay the remaining cost. The higher the deductible, the lower your insurance premium, but make sure that its an amount youd be comfortable paying out-of-pocket at any time.
How Much Does A Basic Renters Insurance Policy Cost
The average renters insurance policy costs between $120 and $190 a year. These basic policies generally offer $25,000 personal property coverage, $100,000 liability coverage, loss-of-use coverage and a $500 deductible, though those numbers are just ballpark figures and your particular insurance policys basic coverage may be different.
Some examples of what a basic renters insurance policy will cover:
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Damage to your belongings that is caused by covered perils like fire, smoke, vandalism, short-circuits, and more.
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At least part of the replacement cost of a laptop that gets fried by a water damage from a burst pipe.
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Some coverage for medical expenses if a friend gets hurt in your apartment plus some legal expenses if that friend decides to sue you.
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Coverage for personal property that is stolen when youre away from home.
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If a covered event renders your apartment uninhabitable, your policy will also pay additional living expenses so you can stay in a hotel during repairs.
Read to learn more what renters insurance does and doesnt cover.
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States With The Cheapest Renters Insurance Quotes
Renters in New Hampshire, South Dakota and Maine pay the lowest rates in the country at around $12 per month. Renters insurance may be cheaper in these states because they experience fewer natural disasters.
Iowa and Wisconsin round out the top five most affordable states for renters insurance.
Compare cheap renters insurance in your area
Take An Inventory To Determine Need
Personal property coverage is probably the main reason you purchase a renters policy. The coverage will reimburse you for covered damage, loss, or theft of your personal possessions up to a certain dollar amount, so you’ll want to make sure you get that amount right.
Performing a home inventory is a good way to determine how much property coverage you need. Follow this step-by-step checklist to inventory your personal property:
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