The Average Monthly Cost of Renters Insurance
If you are a tenant, it is imperative that you invest in renters insurance to protect your personal property.
While the landlord does carry insurance to cover the property, renters insurance is designed to cover potential claims that can affect you as a tenant.
Personal property, loss of use, and liability coverage are the most common coverage options offered by a renter’s insurance contract. If you understand what these specialized property insurance contracts cover and how much you can expect to pay for coverage, you will get peace of mind and protection in one.
Coverage Options Offered by a Renter’s Policy
Personal Property Coverage — Just like a homeowner’s insurance policy, renter’s insurance will offer coverage for your personal belongings, up to the limit stated on your policy. After taking an inventory of all of your possessions, you can select a coverage limit and a deductible. Most policies provide coverage for fire, theft, vandalism, explosion, civil riot, and various other perils that are not excluded from the terms and conditions of the contract. The personal property coverage limit that you select will be a major determining factor of the monthly premium you will pay for coverage.
Liability and Medical Payments Coverage — Just because you do not own a home does not mean you are not at risk for lawsuit. In today’s litigious society, you need protection against lawsuits that can
bankrupt you. If someone is injured due to your negligence, on or off your property, renter’s insurance will provide liability coverage, typically starting at $100,000.
Your policy will also include medical payments coverage, which will pay the medical bills of your guests who are injured on your property but do not want to sue. Basic policies included $100,000 in liability coverage and $1000 in medical payments coverage. Raising the limits may increase policy premiums.
Loss of Use — Loss of Use coverage is included in your contract at no extra charge. This coverage will pay for you to stay in a hotel or another apartment for a specified period of time if your home is uninhabitable. It may also provide coverage to replace spoiled food and clothing immediately after a catastrophic loss.
How Much Should You Budget for Renter’s Insurance?
Your insurance premiums will depend on a number of different factors. If you purchase the standard policy, which provides $30,000 in personal property coverage and $100,000 in liability, you can expect to pay an average of $12 per month, ranging from $10 to $30 per month, according to the Independent Insurance Agents and Brokers of America.
Adding additional riders or raising your limits may increase your premiums.
How Can You Lower the Cost of Insurance?
To keep your premiums low, take advantage of discounts. A multi-policy discount will provide savings on your auto insurance and your renter’s insurance policy when you carry your policies with the same provider. Raising your deductible is an effective way to lower your premiums if you have filed a property insurance claim in the past.
Your landlord’s insurance will not provide coverage for you or your belongings. For peace of mind and protection, spend just $12 per month and buy your own renter’s insurance from a reputable insurer in the industry. Customize your policy to meet your needs, pay your policy each month, and place the burden on your insurer when you have experienced a loss and you must file a claim to recoup.
About the Author – Mary Thompson is a freelance finance and insurance blogger who has been published on a variety of helpful sources online. She’s currently working on an article to cover the affordable renters insurance from Protectyourbubble.com, an online resource for free quotes across the US.
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