How Much Will Renters Insurance Cost?

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For most people renter’s insurance is the one of the cheapest insurances you can buy. Most typical renter’s insurance policies are around $10-25/month.

Our Renter’s Insurance site provides free apartment, condo and home renters insurance rate quotes, at a discount, to help tenants save money.

How Much Will Renters Insurance Cost?

I’ve said it before and I’ll say it again – “how long is a piece of string?” Ok, maybe that’s a bit naughty, but there are so many variations on the price of renters insurance, I mean, if you have a small apartment with a 20 year old box TV, a bed and a microwave it won’t cost as much as if you are the heir to priceless family heirlooms with thousands of dollars worth of jewelry hidden under the mattress, see what I mean? Anyway, I’ll try to explain it a little more. Now that I have indicated there can be a variance, let me answer…

How Much Will Renters Insurance Cost?

Seriously, this does vary by company but also depends on

  • which coverages you select
  • how much coverage you choose to buy and
  • which deductible you choose.

Watch CNN’s Clark Howard talk about why you need insurance when you rent.

Renters Insurance Coverages Personal Property coverage is designed to compensate for any items of personal property which are in your home (furniture, clothes etc) and also any personal property which you may have with you outside of your home (clothes, camera, wallet etc). Personal property coverage can cover a wide variety of things for many different potential reasons:

  • Fire/Smoke/Lightening
  • Ice/sleet/snow/wind/hail – or just simply “bad weather” as it is commonly known
  • Explosions (gas etc)
  • Vehicles and aircraft
  • Damage caused by sudden problems with heating or cooling systems
  • Theft
  • Falling objects
  • Riots
  • Vandalism
  • Damage caused by plumbing appliances

Loss of Use and Additional Living Expense coverage goes one or two steps further, and will recompense you if your home is damaged and made uninhabitable due to something which is insured. Additional living expense will also cover any extra expenses which are incurred because of this, such as alternative accommodation expenses, extra food expenses etc. If you choose to link your cover with inflation, then the inflation in the cost of living will be reflected in your policy, both in your premiums and in your cover.

Replacement Cost coverage is one choice which you will have, which, instead of insuring your goods at the cost price and the present value (ie, if you’ve got a 5 year old TV it won’t be worth as much as when you bought it). If you choose replacement cost coverage you will get the actual cost of replacing your TV, not just what it was worth at the time – certainly worth thinking about. If you have an apartment full of used stuff it might not be worth very much at the moment, but the cost of replacing everyting can run to very much more.

Personal Liability is another option. Just think if your washing machine went on the blink and flooded the downstairs apartment taking with it their TV, computer, music center along with lots more valuables – might you want to be covered for that?

Special Optional Extras Now then, make sure that you read the small print on your rental insurance policy, because it might just be that you’re not actually covered for as many eventualities as you thought you were. Very often things like water damage caused by flooding is not included, and neither is earth movement due to earthquakes or landslides. Nuclear hazards aren’t often included either. If you think that you might need any of these things then you need to ask for additional cover. And that’s about it really, the cost of renters insurance varies widely, just as it costs more to insure a top of the range luxury automobile than it does a bicycle. The best advice I can give you is to shop around, check out some online options and don’t go with the first thing you find. If you do decide to get some renters insurance then check out all of your options first. And remember, if you find one that’s much cheaper than the rest it doesn’t necessarily mean that it’s better – read the small print.

Create a Household Inventory Checklist Whether you rent or own, you should store, in a safe place, a complete inventory of all the items in your home. We have compile a home inventory checklist for you. Or, you can do what I do… I grab the video camera each Thanksgiving (it is an easy to remember date and I am usually home for four days) and I start outside and video everything from the yard to the garage, then work my way inside and film each room. Be sure to open all the drawers and film from different corners of the room. When you do your home inventory checklist this way, move a bit slower than normal. Your final tip – save the film offsite, maybe at your parents or siblings home in case of severe damage to your home.

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