How Much Does Renter’s Insurance Cost in 2023?
If you’re looking at renting a unit, there’s a good chance the landlord requires you to get renter’s insurance. But how much will that set you back, what does it cover, and how often should you compare rates? Renter’s insurance costs vary widely based on factors such as location, coverage limits, deductible, and individual insurance providers, but on average, it could range from $15 to $30 per month.
We’ll break down everything else you need to know about renter’s insurance for you below.
The Importance of Renter’s Insurance
Often, a landlord will require a tenant to purchase renter’s insurance, and if this is the case, the importance of renter’s insurance is that if you don’t get it, they’ll evict you!
But even if you live in a unit where the landlord doesn’t require renter’s insurance, we highly recommend getting it. Renter’s insurance doesn’t cover the property itself. Instead, it protects all your valuables inside the property.
If a natural disaster, a fire, or anything else damages your stuff, renter’s insurance gives you the money to replace your things. This monthly payment can provide you with a ton of financial security. Even better, since renter’s insurance doesn’t cover the property itself, it’s usually nowhere near as expensive as homeowner’s insurance.
How Much Does Renter’s Insurance Cost?
Compared to homeowner’s insurance, renter’s insurance is pretty affordable. But while you shouldn’t have to spend a ton for renter’s insurance, there are a few factors that can affect your rate.
One of the most important factors is what state you live in, although the amount of coverage you choose will play a big role too. Below, we’ve highlighted the nationwide average and the average for a few different states.
Keep in mind that, currently, Michigan has the highest monthly average for renter’s insurance at $22 a month, while Wyoming has the lowest monthly average at $8 a month.
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Additional Costs to Anticipate
For the most part, there aren’t a ton of additional costs you need to factor in with renter’s insurance. However, like most insurance plans, the premium is only part of what you pay if you want to actually use the coverage.
The other half you need to pay is the deductible. The deductible is the amount you need to pay before insurance kicks in. Typical deductibles range from $250–$1,000. The higher the deductibles you go with, the more you typically pay in the monthly premium, but it also means you won’t need to pay as much out of pocket if you actually need to use the insurance.
How Often Should I Check Rental Insurance Prices?
Like other insurance plans, you should check rental insurance prices each year when you go to renew. Often, your current company will slowly creep the rate up, and if you switch to a new company, you can sometimes get a lower rate.
However, once you find a lower rate often your current provider will match the lower rate if you tell them why you’re trying to cancel the coverage.
Also, when you’re shopping for rental insurance, it’s a good idea to try and bundle it with car insurance. This will typically apply a discount to both policies, saving you money compared to going with different companies for your automotive and rental insurance.
Does Rental Insurance Cover Theft or Water Damage?
While you should always check the fine print of any of your insurance policies, renter’s insurance typically covers both theft and water damage. However, to get theft coverage you will typically need a police report.
Moreover, while renter’s insurance will cover water damage from a burst pipe or something similar, it usually does not cover flood damage. This might seem like a fine distinction for you, but it’s a big deal to the insurance company.
If you end up with water-damaged property from flooding, typically, you’ll need flood-specific insurance to get any coverage.
What to Do to Get Renter’s Insurance
The good news is that signing up for renter’s insurance is usually a pretty straightforward process. You can get a quote online from tons of companies, and other companies let you call in to talk to an agent.
Either way, they’ll walk you through everything you need to know and even help you customize your coverage to get the exact level of protection you want. From changing the deductible to the maximum coverage amount, most companies offer flexible policies that can match both your needs and budget.
If you talk to an agent when signing up for a renter’s insurance plan, you can ask them about optional coverages or add-ons for your plan.
Looking for home RENTERS insurance?
Lemonade offers some of the best insurance plans you can find on the market today!
Whether you’re renting an apartment or a home, you really do need renter’s insurance, even if the landlord doesn’t require it. It’s a low-cost way to help protect all of your belongings, that way if a disaster strikes, you’re not starting over from square one.
It’s a low monthly payment for a little extra peace of mind, and that’s well worth it to us!
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Featured Image Credit: Andrey_Popov, Shutterstock