Whether you are a lifelong renter or someone that is just getting into it for the first time, you likely have things that you want to protect. Some of these things are priceless. Pictures of your prom, a picture that your child drew for you of your favorite flower that somehow turned out looking like a football on a stick, a souvenir from a vacation you had, or maybe from your honeymoon.
Other things that you have in your home are expensive and have a value to them. Your television set, laptop, or that designer suit or dress you bought so you could impress at that business dinner and still love to this day. These are the things that you want to have covered by insurance if an emergency happens. The stuff that is expensive to replace, but at least it can be replaced.
There are many homeowners in the world, and for them, there is homeowner’s insurance, There are also many people that rent instead, and it can be the best choice sometimes. What is there to protect them from all the dangers that can damage or destroy their things? Renters insurance is there, but only if you buy it.
Around 37 percent of all households in the United States are renters. Out of those 43 or so million households, only 40 percent are covered by renters insurance. That number is really low, which is a little strange considering that renters tend to file more insurance claims than other types of insurance. Renters should have insurance; the number of claims alone is solid evidence of that. Unlike homeowners, who need to protect the residence itself and need homeowner’s insurance for that, renters only need to care about their property within the unit. Here is what you need to know about renters insurance.
Average Cost Of Renters Insurance
Overall, the average cost of Renter’s insurance in the United States is about $187 annually. It changes in some places each year and over time, for a number of reasons. Renters insurance costs vary based on whether you are renting a house or an apartment, where you live, and your credit history.
The most minimal, bare-bones policies – which are popular with college students in dorms – provide around $12,000 in renters insurance coverage to replace stolen, lost or damaged property. Minimal policies like this usually have a $500 deductible and cost just about $100 a year, which is not a lot if you look at how much the renter’s insurance plan could pay out. Such small policies are not recommended though, as insurers estimate the average renter owns at least $35,000 in personal belongings. A college student might need less than this, but someone that has more possessions needs more coverage.
How Your Coverage Affects How Much Renters Insurance Costs
The average and recommended coverage for renters insurance is about $40,000 in personal property, with a $1,000 deductible and $100,000 of liability protection. The cost of a plan like this comes to be around $17 a month, depending on where in the United States you live. Of course, you might need more than this, and you may be able to get away with less. Being smart about it is essential. Get an estimated value of all of your things, and use that as a benchmark to find the best insurance policy for your needs in terms of coverage. Be sure to shop around for the best insurance policy prices as well. The amount of coverage on your renter’s insurance plan has an impact on the premiums you will pay. Other factors affect costs as well.
Factors Besides Your Coverage Affecting Your Renters Insurance Price
Multiple factors can influence what you pay for renters insurance. The most significant factor outside of how much coverage you are getting is where you live in the U.S. Areas with higher rates of natural disasters such as tornadoes, earthquakes, floods, hurricanes and forest fires are more likely to have higher rates.
Everything is based on risk. For areas that are deemed to be a higher risk of loss due to weather, the costs of your policy will be higher. Unfortunately, loss and damage do not just come from weather-related incidents. Crime rates can also affect rates, as burglary and theft account for many renters insurance claims.
Also, different companies look at each variable in different ways. The best rental insurance companies will all cost different rates. Even though they are all well-known and well-respected, two companies may charge different prices.
Lastly, your credit score and history can raise or lower your rate. Not every state allows insurance companies to charge higher or lower rates based on credit score, but most do. Regardless, improving your credit is a great idea, especially if it is low right now. With loans, credit cards, and insurance rates, there are many things that you could end up paying more for because of a low credit score.
States With The Cheapest Average Renters Insurance Costs
The states with the lowest rates for renters insurance are spread across the United States, but the common thread between them all is a lack of substantial or frequent natural disasters. They lack fault lines that cause frequent earthquakes, and while they have snow or rain storms, these weather events rarely are at disastrous proportions. North Dakota and South Dakota are first and second cheapest, with average rates of $115 and $118 a year, respectively. After this, there is a bit of a jump in annual cost to $130, $134, and $145 for Wisconsin, North Carolina, and Montana, respectively. Of course, laws change every year, so renters insurance coverage rates do as well.
States With The Most Expensive Average Renters Insurance Rates
States with higher instances of floods, hurricanes, tornadoes, and fire tend to have the highest renter’s insurance. Mississippi has the highest average renters insurance rate at $244. It’s followed closely by Louisiana, Alabama, Oklahoma, and Texas, whose averages are $242, $239, $234 and $228, respectively.
Final Notes (H2) Getting the best rates for renters insurance means shopping around for insurance, knowing how much renters coverage you need, and choosing a top insurance company that fits your needs. You can find the best insurance plan for your needs here. It only takes a few minutes to get free renters insurance quotes. Start the process now.