Everything you need to know about insurance basics, like coverage types, limits, cost and more.
Average Renters Insurance Cost Coverage
How Much Is Renters Insurance?
Whether you’re a first-time renter or have been in your third-floor studio for years, renters insurance is one way you can help protect what matters most. But with all the other bills you have to pay, you might be wondering just how much renters insurance will cost you. We’ll help you understand what goes into the cost of renters insurance and how much you can expect to pay.
How Much Does Monthly Renters Insurance Cost?
The average cost of renters insurance is often less than $15 a month. In general, most renters insurance policies are extremely affordable. So for the cost of about three fancy coffees or one large pizza, you could get the coverage you need for your apartment or home.
How Is Renters Insurance Calculated?
So how is your renters premium calculated? Here are a few factors that can affect the price of your renters policy:
- Coverage limits
- Location of residence
- Property type
- Replacement cost vs actual cash value
- Deductible amount
We’ve highlighted some questions below to help you better understand the cost of your renters insurance. You can also try our renters insurance calculator to get a better idea of how it's calculated and how much it'll cost you.
What Are Your Coverage Limits?
One of the biggest factors that helps determine the cost of your renters insurance is the amount of coverage you have. Every renters insurance policy has standard coverage limits, which are the maximum amount your policy will pay in case you have a claim. Your personal property and liability coverage both offer protection up to two different dollar amounts.
And there are also options to expand your coverage limits to protect valuable items worth more than your limits. Perhaps you have expensive electronics, a pricey new engagement ring — you’ll want to consider scheduled personal property coverage (also known as itemized personal property coverage). This not only gives you a higher coverage amount, but your items will be covered for more types of events.
Just remember that extending your coverage limits will impact the cost of your renters insurance premium.
Will Location Affect the Cost of Your Renters Insurance?
The location of your rental may also affect your insurance rate. If your area is prone to natural disasters or crime, your renters insurance rate will probably be higher than an area that is relatively safer.
Average Cost of Renters Insurance By State
Depending on where you live, renters insurance costs vary. The national average is $179 a year, or $15 a month. Check out the table below to see what your state charges.
The cost of renters insurance varies depending on your coverage and limits — that’s why it’s important to talk with your American Family Insurance agent to find the best policy for your belongings and your budget.
And be sure to check out our Resource and Apartment Resource Hub to learn more about renters insurance, landlords, DIY ideas for your place and more!
This article is for informational purposes only and includes information widely available through different sources and does not afford or guarantee any coverage.
Related Topics: Renters