What People Are Saying
Thanks for making it easy to find the cheapest renters insurance. Knowing our stuff is always protected gives me peace of mind.
Matt and Bethany, Charleston SC
HOW MUCH IS RENTERS INSURANCE?
So you have decided to protect your belongings with renter’s insurance, and now you are wondering “How much is Renters Insurance”. Well that answer will vary depending on your circumstances and the options that you choose. In general, Renter’s insurance is fairly inexpensive, running around $5 - $40 per month. That is a small price to pay for peace of mind. But now let us look at some of the options and circumstances that will influence your cost for renters insurance.
1. How Much Coverage: When you purchase renter’s insurance, you are purchasing a fixed replacement cost for all of your possessions. This represents the maximum payout in case of a major disaster, like a fire. So if you get $25,000 of coverage, in case of total loss, you will get the $25,000. The cost of your renter’s insurance will vary based on the amount of coverage you select. Although you may estimate your belongings to be valued at $30,000, you can select a $20,000 coverage policy and get cheaper rates. You will still cover the majority of your belongings, but at a cheaper rate. Before purchasing renter’s insurance, estimate the value of your belongings, then determine which of those you would want replaced in case of an emergency. Select the amount of coverage based on this estimate.
2. Deductible: The deductible is the amount that you will pay out of your pocket before the insurance kicks in. Deductibles are generally available in increments of $500; example $500, $1000, $1500. The higher the deductible you select, the lower your insurance premium will be. In order to determine which deductible to choose, you need to assess how much you believe you can afford to pay out of your own pocket when a loss occurs. If you are always tight on cash, then you should probably choose the $500 deductible. But if you can save $1000 or $1500 for emergencies, then you can increase your deductible, thereby decreasing your premium.
The amount of coverage and the deductible level that you select after obtaining free renters insurance quotes are the major factors that determine, how much is renters insurance. But there are some other factors discussed below, that play into the overall cost as well.
3. Risk Assessment: Like with any type of insurance policy, such as car, homeowner’s etc., the insurance company assesses the risk of providing you a policy and will adjust your premium based on that assessment. For example, if you live in a neighborhood that has a high theft rate, or if you have made several claims over the last couple of years, the insurance company will assess that you are a high risk for making a claim. In this case, they will charge you a higher premium. There are some ways to reduce this risk, for example, installing a smoke detector or a burglar alarm. You need to check with your insurance company to see what incentives they offer.
4. Adding Replacement Cost: Most policies will reimburse you for the actual cash value of your property. Since most property decreases in value over time, the amount of your reimbursement will likely be less than what it will take to replace the item. However many insurance companies give you the option of selecting replacement cost in your policy. This will increase your premium, but greatly increase your payout. Again, you need to look at your particular situation, but especially if you have a lot of electronics, this is an option worth considering.
Tips to Reduce Renters Insurance Cost
Use the same company that you use for other insurance policies, such as car or health insurance. Many companies give discounts for having multiple policies with them. This could extend to others in your household. If you have roommates, convince them to use the same company for their insurance needs. Some insurance companies offer discounts for policies bought at the same time.
Ask your insurance company what incentives they offer for discounts. Most will give you a discount if you install some basic protective devices, such as smoke and burglar alarms.
Pick the right policy for you. Select the coverage amount that fulfills your needs, no higher, and a deductible level that you can support. If you can put an extra $500 in savings, so that you can increase your deductible from $500 to $1000, then you will save on your premium. In the meantime, besides saving on your premium, the $500 will be drawing interest, all saving you money. Pay the premium in one lump sum, yearly. Insurance companies charge a small processing fee to handle multiple payments, increasing your total premium.
Shop around and compare the costs for renters insurance from several different insurance companies. Simply enter your zip code and other basic information on this website, and local insurance representatives will contact you shortly. Be sure to ask them about the different options available in their policy, as well as incentives for saving on the premium. Before they contact you, have a good idea of the amount of coverage and the deductible that you are willing to select. Then you can work with them on the other details.
Remember renter’s insurance not only insures your property in case of loss, but also provides you with liability coverage, protecting you from lawsuits that may be brought against you. If someone is injured while in your home, they have the right to sue you. Liability coverage protects you in this situation.
You need to consider all of these factors when determining “how much is renters insurance”, and use the free quote service available on this website to help you get the best deal.