Call Us: 318-658-9529
Press 3 for TN Members

What is the Cost of Renters Insurance?

What is the Cost of Renters Insurance?

As many of you know, renter’s insurance is not required in any state, but it is a smart decision to have it.  In most cases renter’s insurance is a fairly reasonable cost.  The individual you rent from (landlord) is only responsible for insuring the actual structural part of the building and any appliances that are in the building. 

Your landlord is not responsible for your personal items if they are damaged.  If you did not have renter’s insurance your personal items would not be covered if there was a fire, break-in, or any other instance where your personal possessions were damaged.

With renter’s insurance, you can also include liability insurance.  Having liability insurance with you renter’s insurance means if you have someone who is staying with you and is injured, your renter’s insurance would cover their medical bills.  If they decided to sue you for their injuries, your insurance would cover your legal defense. 

Renters insurance may also cover your living expenses if your house or apartment becomes unlivable and you need to relocate or live in a hotel while it is being repaired.  The cost of renter’s insurance is very reasonable and can sometimes be purchased at less than $10 a month when it is bundled with your other insurance policies.

Average cost of renter’s insurance

The average cost of renter’s insurance varies, depending on what state you live in and what company you’re purchasing your policy from.  Some companies advertise a rate of roughly $5 a month for very basic coverage.  The weighted average (between all states) is estimated at about $210 per year.

The state with the highest renter’s insurance is Mississippi at $262 annually, and the state with the lowest cost is Minnesota with a $144 a year cost.  Just remember, that the cost for renter’s insurance will be based on where you live and what type of coverage you have, so be sure to get a quote directly from an agent.

Cost compared to homeowners and car insurance rates

When it comes to homeowner’s insurance, the rates are significantly more expensive.  This is due to homeowner’s insurance covering the entire structure of your home.  The average cost for homeowner’s insurance is around $1,200 per year (again this varies by house and where you live).  Car insurance is somewhat less expensive than homeowner’s insurance, this will run you roughly $898 per year.

Ways to save on renter’s insurance

Renter’s insurance can almost always be affordable, especially when used with different discounts and bundling with other policies.  Some of the ways you can save additional money on your monthly renter’s insurance policies is by:

  • Adding security cameras
  • Using anti-theft devices in your apartment
  • Having smoke detectors
  • Fire extinguishers
  • Using deadbolt locks

The options you choose will affect your rate

There are 2 different types of coverage for renter’s insurance.  One is the actual cash value (ACV) which will provide you reimbursement for the items that were stolen or destroyed at that time.  So, for example, if you bought a $1,200 computer and it was stolen 2 years later and the current value was $900, you would receive $900 for the computer. 

Replacement cost would provide reimbursement for how much the item would cost to replace it, so if the same computer was stolen 2 years later, you would still receive the $1,200 to replace it.

The ACV policy will have a lower premium than the replacement policy, but will not provide the same amount of coverage.  You want to make sure you weigh your options when making the decision on which coverage to choose.

If you have questions on renter’s insurance, or any other type of insurance policies, please be sure to reach out to Safe Harbor Insurance.  We are here to assist you with all your insurance needs!