If you think you don’t have enough stuff to warrant buying renters insurance, think again. It would surprise to find out how fast your items can accumulate and how costly it can be if you need to replace them.
Think about your computers, digital cameras, expensive jewelry, clothing, furniture, HDTV and more. Items like these can add up considerably to over $10,000 or more. Renters insurance will protect your belongings and it’s very affordable.
Factors that Affect Renter’s Insurance Costs
There are many factors that affect how much you pay in renter’s insurance. This depends on your insurance company. Some factors they may take into account for your monthly rate include:
- The amount and type of coverage you need.
- The deductible you have on your policy.
- The location of your apartment or rented home.
Renter’s insurance rates can range between $180 to $360 annually ($15 to $30 monthly). This is just an estimate and as mentioned, your exact quote will depend on the factors above and if you have any optional floaters or endorsements added. You can shop around to find the cheapest renters insurance for your situation.
For instance, if your apartment is located in a flood area or in an area prone to hurricanes, this could increase the rate you pay. If there have been multiple insurance claims coming from the house or apartment, this could also increase your rates. If you decide you want additional liability coverage or an increase in the amount you get for reimbursements for your belongings this will increase your rate as well.
Some common insurance claims that are made by renters include:
Burglary and Theft
This accounts for a majority of renter’s insurance claims. While you may think you are less susceptible to theft in a rental unit, especially if you live in a small city, the opposite is true. (https://www.valuepenguin.com/average-cost-renters-insurance)
This is another common renter’s insurance claim and it’s not always in locations that are dry.
Accidents and Injuries
These also contribute to renter’s insurance claims and although you won’t be protected under renter’s insurance for your injuries, your guests will.
Renter’s insurance is an insurance coverage that’s least utilized even though it’s the most affordable type of insurance. You may be reluctant to spend money on this policy if you’re on a tight budget. However, unexpected events can occur that you can’t always prevent such as a guest’s injury or a break-in. Therefore, you want to protect your belongings with renter’s insurance.