Average Cost Of Renters Insurance: Most Affordable and Best Insurance In 2020

What Is The Average Cost Of Renters Insurance In 2020?

Generally, the average cost of renters insurance is very low, than other types of protection. In the United States, typically, insurance for the tenants only costs $15 a month. However, despite this low cost of renters insurance, it could offer you more than a thousand of insurance protection. 

Renters Insurance usually is the cheapest insurance policy. It could offer the insured protection to its personal properties. It could protect the personal properties of the insured against covered damages, including theft. Besides, it could also include the insured from liabilities, should he cause bodily injury and property damages to other people. Furthermore, renters insurance offers additional living expenses, should the apartment of the insured is uninhabitable. However, damages to the rented unit are the landlord’s obligation to repair. Here we will help you how to purchase renters insurance for better protection to your belongings.

Average Cost Of Renters Insurance From Different States

The average cost of renters insurance is typically up to $190 to $200 a year. However, its actual cost varies depending on the proposed insured’s location and claim history and other more factors. Additionally, renters premium also varies on the limit of coverage the policyholder chooses. 

STATE MONTHLY PREMIUM ANNUAL RENTERS INSURANCE PREMIUM
Louisiana $20.10 $240
Georgia $18.80 $226
Florida $18.80 $218
California $17.20 $207
Nevada $16.10 $193

Factors That Could Affect The Cost Of Renters Insurance

Location Of The Rental Property Could Affect The Cost Of Renters Insurance Policy

If the location of the rental property is near a fault line or is susceptible to flood —no wonder it could get a higher premium rate. Besides, if the rental property of the insured is in the alley where the crime rate is undeniably high —it could also get a higher premium rate. In insurance, if the insured has a high probability of filing a claim, the insured could garner a higher premium rate. 

Security Features

Like the location of the rental building, the insured could gain a cheaper premium, if the building has security features. Examples of these security features are front desk security and CCTV cameras. If your rental building is near a high crime rate area and does not have any system for security —you can get a high premium rate. However, you can always talk to your landlord about installing security systems —besides that, it is a good investment; it can also protect the landlord and its tenants from any losses. Furthermore, it can also be an asset to attract more tenants to rent a unit on the building. 

Fire Prevention Systems

If the place you are renting has sprinklers and smoke detectors, thanks to your landlord —you could get a lower premium rate. However, if your rental unit does not have any —you can always install one. Installing a smoke detector is easy as 123; also it can help you save an amount of money every month from your premium. 

Pets 

If the proposed insured owns animals that have a high risk of causing an injury to others —you will likely get a higher premium rate. However, if the pet you are owning is only a fish or a cat —this will not change your policy rate. For this reason, cats and fish are not that dangerous as dogs. Additionally, an exotic pet, including monkeys and reptiles such as snakes —is sometimes completely excluded from coverage. 

Coverage Limit Of Renters Insurance The Insured Chooses

Personal Property

Personal property coverage could help pay for the repair and replace the belongings of the insured. Examples of these belongings are the insured’s clothing, furniture, and electronics. Generally, this coverage does not cover damages to other belongings that are beyond the coverage limit of the insured. 

Liability Coverage

Liability coverage could cover two types of liability of the insured including;

Bodily Injury

This coverage could pay for the medical bills of the injured other person. However, coverage would only be applicable if the insured is responsible for the injury. For example, the insured hosts a party at their house. The house of the insured has an attic but is close to the visitors. One of his visitors is curious about what is in the attic and why it was closed for the visitors. Then, he takes his curiosity into action; he climbs up the stairs and finds nothing. However, when it is his turn to go down, he accidentally slips on the stairs, which causes his ankle to break. 

Property Damages

This coverage could provide for the cost of repair for the property of a third party person —should the insured be responsible for its damages. For further illustration, suppose that one afternoon, the insured is playing baseball in their backyard. However, he accidentally hit the ball vigorously and hit the window of his neighbor. Due to the strong impact, it causes the window of his neighbor to break. In addition to that, his neighbor demands the repair of his broken window. 

This situation is covered because the damage is not intentional and is not plotted.

Additional Living Expenses (ALE)

Additional living expenses or sometimes known as loss of use could provide for the insured’s expenses —should his rental apartment is uninhabitable. This coverage could provide for the insured’s cost of accommodation, clothing, toiletries, and food. However, the insured should always bear in mind that this coverage has a per-day limit. So before you check-in to a luxurious hotel, you should ask your insurer first how much is your ALE coverage limit —because if your expenses exceed your limit, the insured will have to pay for the difference. 

Annual Premium Rate Based On Your Coverage Limit

Personal Limit Liability Limit Annual Renters Insurance Premium
$15,000 $100,000 $123
$15,000 $300,000 $132
$25,000 $100,000 $152
$25,000 $300,000 $160
$50,000 $100,000 $224
$50,000 $300,000 $236

How Do Deductibles Affect Renters Insurance Premium?

A deductible rate is what the insured has to pay out of his pocket, before the insurer starts to pay for the claim. Typically, the renters’ insurance deductible rate is somewhere between $500 and $1,000. However, the insured could always choose a lower deductible between those two variables. The insured could also choose a higher deductible to keep his premium at a low rate.

In insurance, the lower the deductible, the higher the premium you will get, and vice versa. However, if you get a higher deductible rate, you have to make sure that you can pay for it every time a loss happens. Therefore, it only means that you have to choose a deductible that you could pay comfortably without putting your budget into risk. 

How Item Valuation Affects Cost Of Renters Insurance?

The type of valuation also has a significant effect on your renters’ insurance policy. Typically, if the insured chooses to replace its belongings based on its actual cash value —it will usually cost less in premium. Therefore if the insured decides to replace its belongings with replacement cost value —they would naturally get a higher premium rate. 

Actual Cash Value

If the insured chooses the actual cash value policy, the reimbursement would be based on the current market value of the belongings. Additionally, this includes the wear and tear of the belongings. For example, the 8-year-old sofa set of the insured incurs covered damages. When the insured bought the set, it costs $1000. However, its market value on the time it incurs damages is only $300. The insurance company will reimburse the insured with its current market value, minus its wear and tear. So the reimbursement may be lower than its market value. 

Replacement Cost Value

Once the proposed insured chooses the replacement cost value policy, the insured will probably gain a higher premium rate. Replacement cost value policy could reimburse the damaged belonging of the insured with its equal quality and a newer version. Therefore, if the sofa of the insured incurs damages, the replacement would be on the same sofa set in today’s market. 

Here at Renters Insurance California, we could help you find affordable renters insurance from well known A-rated insurance providers. Get a free quote here.

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