renters-insurance-cost

It’s usually the first question we  hear from customers – how much does renters insurance cost? Well, very simply,  renters insurance typically costs a little  less than $20 per month. That’s right, for the cost of 2 large pizzas, you can get some great insurance coverage from a leading company.  So that’s the easy answer.  If you are satisfied with that, we recommend heading over to our main site and getting a quote right now. The more complicated answer is – it depends. In this post, we’ll take a look at some of the main factors that can impact the your personal renters insurance cost.

Factor #1: Coverage Options

When you purchase renters insurance, you can select different levels for the various coverage options. The two major coverage categories are property coverage and liability coverage. These largely determine your renters insurance cost.

A standard property coverage level is $20,000, but it can vary from as little as $10,000 to more than $50,000, depending on which insurance company you use. This is a significant range and it significantly impacts your renters insurance cost. In fact, $10,000 more in property coverage might increase your cost by as much as $10 per month.

A standard liability coverage level is $100,000. This is also typically the minimum coverage, but it ranges as high as $500,000 or even $1,000,000. However, even though these numbers are much bigger, there is a much smaller price impact if you change your liability coverage than if you change your property coverage. For example, changing your liability coverage from $100,000 to $300,000 may only increase your cost by $1-$4 per month. This is why we always recommend adding more liability coverage – it’s a great value!

For more info on coverage options, check out our comprehensive Millenial’s Guide to the Best Renters Insurance.

Factor #2: Location

The impact of location on price is not as obvious to some consumers, but it certainly does matter. This makes sense when you consider that renters insurance protects you against losses from crime and weather. Just as these factors vary significantly from one location to another, so will your price change!

Additionally, insurance regulations and legal environments are different in each state. This makes it more expensive for insurance companies to operate in some states than in others. This shows up in your renters insurance cost  as well.

While it’s difficult to make a blanket statement about which locations are more expensive than others, we often see higher prices in very urban areas (higher crime), very rural areas (farther from emergency services), and areas subject to natural catastrophes, like coastal locations.

Factor #3: Personal history

The last major factor that impacts your renters insurance cost is your personal financial history. Due to concerns about insurance fraud – fake claims, essentially – insurance companies check your “insurance score” to make a risk assessment. Insurance scores are similar to credit scores and often correlated with credit scores. Consumers who make multiple insurance claims may see their premiums rise in the future, as the insurance companies view it to be a riskier policy.

 

Outside of these three factors, there may still be minor variability in renters insurance cost between different companies. This is because different companies include different ancillary coverages and generally have different underwriting models.

If all of this talk about different renters insurance costs has you wondering what your quote might be, head over to our main site to get a quote for yourself!