How Much Does Renters Insurance Cost, and What Affects Your Rate?
What if investing in your future was easier – and less expensive – than you ever imagined?
For those who rent their home, renters insurance is usually optional. There are a number of great benefits, but many hold off on getting this coverage because they are confused about what renters insurance is, what it covers and how the insurance company determines your rate. There are many myths about renters insurance and it is important to get to the bottom of it all so you have a clear point of view.
Looking for answers to this coverage and more? Want to learn how much a robust policy costs and the different factors that can drive your price up or down? For all these answers and more, keep reading to discover everything you need to know about renters insurance costs.
How Much Does Renters Insurance Really Cost?
How much does renters insurance cost? The exact answer will vary based on your state, your zip code, and other factors that we will detail in this guide. Generally, though, the average cost is $148 per year.
At first, you may balk at the idea of paying that amount each year for an optional form of coverage. Keep in mind, though, that this comes to about $12 per month. By simply buying one less fast food meal per month, you can afford an important form of financial protection all year round.
The National Average (and What to Expect with InsureOne)
Now, you have an answer to the question “How much does renters insurance cost?” — about $148 per year. However, that is only an average cost, meaning it is quite possible for you to pay less for your own policy. Your friendly neighborhood agent will help you customize a policy that gives you the most protection without breaking the bank each month.
Why It Is One of the Most Affordable Types of Insurance
The average cost of renters insurance is relatively low because the policy is designed to protect your belongings and not the home itself. While it offers other important protections, such as liability coverage, the fact that the policy does not have to protect the expensive structure helps keep monthly premiums low.
What Is Included in a Renters Insurance Policy?
Before you can decide whether the renters insurance cost is too high, you must know exactly what your policy does (and does not) cover. The main protection is personal property coverage, which protects your possessions against both damage and theft.
You also get liability coverage that can pay for things like medical bills or even court costs if a house guest gets injured and claims it is your fault. This coverage also helps with managing pet damages in a rental property. Finally, standard policies include loss of use coverage that will pay for a hotel or other alternative place to live in the event your home becomes temporarily uninhabitable.
Optional Add-Ons That May Affect Price
If you do not mind paying higher renters insurance rates, there are optional riders you may wish to add to your policy. Depending on where you live, there may be policies to cover damage from natural disasters such as earthquakes.
You can also get a scheduled property rider to cover costly items, an at-home business rider if you work in your house, and even an identity theft rider. As always, it is recommended you check with a provider about all of their optional coverage before taking out a new rental policy.
What Factors Affect Your Renters Insurance Rate?
“Why is my renters insurance rate so high?” That is a question many ask when they compare their monthly premium to the national average — and there is no one-size-fits-all answer.
There are many factors affecting tenant insurance rates. What are the factors you need to know to keep your own rate low? Below, you will find all the information you need to know.
Location, Location, Location
One of the most significant factors affecting renters insurance pricing is your home address. This is because your zip code tells your carrier how likely you are to experience theft, weather damage, or another event that will cause you to file a claim.
Coverage Limits and Deductibles
Your deductible is what you must pay first before your policy covers damage, and your limit is the maximum amount that a claim may pay out. By increasing your deductible and/or lowering your limit, you can lower your renters insurance cost.
Safety Features and Building Type
What affects renters insurance premiums? One surprising answer is the way your home is constructed. If it is made of brick, concrete, or other materials likely to resist fire and other types of damage, it will be cheaper to insure.
Similarly, a home with many additional safety features (including home security systems) may be cheaper to insure because it is less likely to be robbed. To understand why these security systems are so important, be sure to review the most recent burglary statistics that prove the need for renters insurance.
Claims History and Credit Score
One of the most straightforward factors affecting tenant insurance rates is your history of making claims. Simply put, if you have filed multiple claims before, your carrier thinks you are likely to do so again, and your premium may reflect that. Additionally, those with a lower credit score are likely to pay more, so improving your credit is an easy way of lowering your renters insurance pricing.
Tips for Keeping Your Renters Insurance Affordable
Now you have possible answers to the question, “Why is my renters insurance so high?” Some of the answers may be frustrating, though, as you cannot easily change the factors influencing the cost. You may have a hard time improving your credit rate, for example, or you may have trouble moving to a safer (and likely more expensive) neighborhood.
However, there are a few easy ways that just about anyone can easily lower their renters insurance cost. Below, you will discover more about these methods and how they can help you start saving money each month.
Bundle With Auto Insurance for Extra Savings
If you get more than one type of policy from the same carrier, you may be able to bundle them together. For example, you can bundle your automobile and renters policies, which can save money on each premium.
Increase Your Deductible — If It Makes Sense for You
The deductible is how much you must pay before your insurer pays out on a claim. Lower deductibles lead to higher monthly premiums. Increasing your deductible (so long as it makes sense for your financial situation) is an easy way to instantly decrease renters insurance costs.
Choose the Right Amount of Coverage (Not Too Much, Not Too Little)
The more rental coverage you have, the more you pay. By working with an experienced local agent, you can discover how much renters protection you need and get just the right amount of coverage — not too much, not too little.
Affordable, Reliable Protection — InsureOne Makes It Easy
Now you know everything you need to know about renters insurance costs. This includes what is covered, what factors affect rates, and how you can save money each month. But do you know where you can find the best plans and the best prices?
Here at InsureOne, we offer renters just like yourself the protection they need at the prices they deserve. When you are ready to experience the lowest costs and the highest levels of customer service, come get a quote online. Additionally, you can always pick up the phone and give us a quick call at 800-836-2240. Finally, feel free to come find an InsureOne office near you.