When someone asks, “how much is renters insurance?” the straightforward answer is “it depends“. Compared to other types of coverage, especially medical and automobile, renters insurance is not terribly expensive. Today, the average cost is around $15 to $20 a month. There are many factors that affect the cost. And these factors are both in and out of the tenant’s control.
Various factors can affect the cost of renters insurance:
- The state and location in which the tenant lives: Areas prone to have higher natural disasters or crime rates will play a role in the cost.
- Coverage amounts: In the event personal property gets damaged or stolen, tenants will want to have a policy to cover the cost to replace or repair the items. So the amount of and value placed on personal belongings will affect how much is quoted for the premium.
- Deductible amount: The higher the deductible, the lower the cost.
- Claims history: Having filed a previous claim within a certain period of time may affect what tenants pay. Every insurer has their own calculation, so it is good practice to compare quotes if possible.
Every tenant’s situation is different and every insurance provider has its own calculation. These various factors affect the cost. Overall, renters insurance is relatively inexpensive and can provide a great deal of peace of mind.