Renters insurance can sometimes be overlooked or disregarded by many individuals. Unlike car insurance, it is not required by state laws, and it may feel like an additional expense that can be avoided. However, if you want coverage for potential problems such as fire and theft, having the best renters insurance is crucial. The good news is that you can often find coverage for as low as $13 a month.
How Much Does Renters Insurance Cost?
Renters insurance costs an average of $157 per year for a policy with $15,000 of personal property coverage. For a policy with $30,000 in coverage, the average cost is $199 per year, while a policy with $50,000 in coverage costs around $260 per year. As Yael Wissner-Levy from Lemonade Insurance puts it, “Renters insurance is way cheaper than you think.” It provides protection against unforeseen events like stolen phones or apartment flooding caused by a neighbor.
Additionally, renters insurance offers more than just coverage for theft and fires. It also includes liability insurance, which pays for injuries and property damage caused accidentally to others. It covers medical bills if your child accidentally harms another child at a playground or if your dog bites someone. Moreover, liability insurance covers damage to a neighbor’s belongings in the event of a kitchen fire spreading to their unit. It also covers the cost of legal defense in case of a lawsuit. Another aspect of renters insurance is additional living expenses coverage, which provides reimbursement for expenses beyond regular household bills, such as hotel rooms, restaurant meals, and storage, if you can’t live in your apartment due to an issue like a fire.
How Much Is Renters Insurance in Your State?
The average annual cost of renters insurance varies by state, ranging from as low as $92 per year in Wyoming to $358 per year in Rhode Island for $15,000 of personal property coverage. The cost of renters insurance is influenced by factors like location, previous claims history, and credit (in states where credit is considered). Living in an area prone to severe weather or with high crime rates typically results in higher rates.
Cheapest Renters Insurance Companies
State Farm is often the most affordable option when it comes to renters insurance, according to our analysis.
How Much Is Renters Insurance in Your City?
In our analysis of rates from top renters insurance companies across over 90 large cities in the U.S., Durham, North Carolina emerged as the cheapest overall. The average costs of renters insurance in Durham are as follows:
- $72 per year for $15,000 in personal property coverage
- $116 per year for $30,000 in personal property coverage
- $170 per year for $50,000 in personal property coverage
On the other hand, the most expensive cities for renters insurance in terms of the three levels of personal property coverage are Detroit, New Orleans, and New Orleans.
Factors Affecting Renters Insurance Rates
Besides location, several factors can influence the cost of renters insurance, including coverage limits, deductible, claims history, credit, and even dog ownership.
How Much Renters Insurance Do I Need?
To determine the coverage you need for your renters insurance, you should estimate the value of your belongings and consider how much you could lose in a lawsuit. Taking inventory of your possessions, including electronics, furniture, clothes, and jewelry, and gathering receipts can help you determine the value of your belongings. If you opt for replacement cost coverage, you should estimate the amount needed to replace all of your possessions. In terms of liability insurance, make sure to buy enough coverage to protect your assets in case of a lawsuit.
FAQs
Here are some frequently asked questions about renters insurance cost:
- Is renters insurance required by law?
- Is renters insurance worth it if I don’t own expensive items?
- Can I bundle renters insurance with other insurance policies?
- Does renters insurance cover damage caused by natural disasters?
- Do I need renters insurance if my landlord has insurance?
Conclusion
Renters insurance is a vital investment that provides valuable protection against various risks and unexpected events. The cost of renters insurance varies based on several factors, including location, coverage limits, deductible, and claims history. By understanding your needs and evaluating these factors, you can find the right renters insurance policy that offers adequate coverage at an affordable price. Remember, renters insurance is not just another monthly bill; it’s your best defense against unforeseen situations that can significantly impact your life.
