You might not have considered renters insurance as a needed expense, but it does hold functional significance.
It helps protect you financially if something happened to your personal belongings. That means the policy covers you if your items are stolen or damaged from an accident that occurs on the property. Keep in mind that your landlord will only cover damages to the building while paying for other damages is your responsibility.
This is where the role of renters insurance comes into play. However, if you’re wondering whether your renters insurance is an affordable expense, we have you covered there. This article includes details on how much renters insurance costs and what factors into it.
How Much Does Renters Insurance Cost?
It’s worth mentioning that the cost of renters insurance varies from state to state. Numerous factors affect the cost of monthly premiums. The cost may also depend on the insurance carrier you choose.
According to a survey, the median cost of renters insurance premiums across the country is around $13 to $20 a month. However, this average price may change if you buy the policy from a different insurer. It’s important to get multiple quotes from several insurance companies before you select one.
Moreover, recent data published by the National Association of Insurance Commissioners (NAIC) showed that the standard cost of getting renters insurance premiums has decreased. The cost has gone down by an average of 0.5 percent. The report further shows that it is the fourth consecutive year that renters insurance costs have dropped.
What Factors Determine the Cost of Renters Insurance?
Some variables impact how much you pay in premiums under your renters insurance policy:
Location
The cost of premiums can be affected based on where you live in the U.S. For instance, according to NAIC’s data, the average premium for a month in Texas is $17.75, whereas, it’s $11.92 in Wisconsin.
Deductibles
In general, the high deductibles have lower premiums. On the other hand, a lower deductible may mean you spend more on monthly premiums. You also need to consider whether monthly premiums are affordable for you or not if you want them to decrease.
Riders
Also referred to as add-on insurance or floaters, riders can increase the rate of your renters insurance. If you add more riders to your renters insurance policy, premium costs increase. Riders get some extra coverage to add to the policy. These include anything from identity fraud coverage to extra coverage for any valuable belongings.
Total coverage
The total coverage on the insurance policy also determines its cost. Higher amounts of coverage usually have costlier insurance premiums.
Summing Up
Overall, you must consider all the factors that determine the cost of renter insurance before estimating the cost of premiums. Also, discuss it with an insurance agent to learn different ways you can reduce costs and enjoy savings while getting maximum coverage.
Links
https://www.usnews.com/360-reviews/renters-insurance/how-much-is-renters-insurance