How much would you lose if there was a fire or theft in your rental unit? Do you have enough money saved to replace your valuables in such an event? Do a quick tally of how much money you’d need to replace your laptop, TV, home electronics, jewelry and any other valuables. Renters insurance only costs between $15 and $30 per month on average. It’s cheap considering how much you have to lose if something goes wrong.Home mortgage
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364925BF-22D7-405E-BBD3-A35489D76575 Created with sketchtool. Looking for a cheaper policyBuying/renting a new houseJust browsing Is this a new home purchase? Yes No Square Footage
364925BF-22D7-405E-BBD3-A35489D76575 Created with sketchtool. <1,0001,000-2,4992,500-4,9995,000+ Find matches QUICK FACTS 47D79854-EFBD-4BA8-9B92-D5A7629F8F80 $382/year average savings through Bankrate Two-thirds fraction 2 out of 3 homes are uninsured Home insurance contract 1 out of every 20 insured homes makes a claim each year Circle with checkmark 100% of homes need insurance before getting a mortgage Rental insurance covers your personal property against damage or loss from theft, fire, water, wind and hail. How much is renters insurance? Policies can vary in price depending on the insurer, the dollar amount of the valuables insured, size and condition of the rental, property location and other factors.How much is renters insurance in my state?Renters insurance prices depend on the state. The Insurance Institute’s report of average rental insurance costs details the average premiums by states.Here are the most expensive and cheapest states for renters insurance.Most expensive states Rank State Average Annual Cost 1 Mississippi $275 2 Louisiana $252 3 Oklahoma $247 4 Alabama $245 5 Texas $241 6 Georgia $230 7 Arkansas $223 8 Tennessee $207 9 California $200 10 Massachusetts, New Mexico, New York $198 Least expensive states Rank State Average Annual Cost 1 North Dakota $113 2 South Dakota $114 3 Wisconsin $132 4-6 Iowa, Nebraska, Utah $141 7 Minnesota $142 8 Montana $145 9 Alaska $148 10 Idaho $150 Factors that influence the cost of renters insuranceHere’s a quick-reference guide showing factors that can affect the renters insurance cost and ways you can save on your premium.Renters insurance costs you can’t control: Location Rental’s condition Renters insurance costs you can control: Bundling insurance policies Cash value vs. replacement cost Deductible Equipment like smoke detectors and home security systems Paying your premium in full vs. monthly How can I lower my renters insurance?Although renters insurance is cheap, saving a few dollars per month adds up after a while. Let’s look closer at the rental insurance factors listed above that you can control to save money.Bundling insurance policiesIf you also have other insurances like auto or life insurance, bundling all your insurance policies with one insurer can bring you a discount across the board.Cash value vs. replacement cost policyA cash-value policy means your insurer will pay what your property costs if you have to go out and buy a new replacement that day. An actual-value policy reimburses you based on the lost or damaged items’ current value. Cash value policies are more expensive. But if you have a lot of electronics, an actual-value policy is not worth the small savings, since TVs, computers and other electronics lose value fast.DeductibleThe deductible is the amount you have to spend out of pocket before your renters insurance kicks in. The higher the deductible, the cheaper the renters insurance cost. Set it too high and you may not be able to pay it in an emergency. If it’s too low, you’re paying extra money in premiums every month.We compared quotes from Geico.com for an apartment in Chicago (ZIP code 60657) for rental insurance covering $20,000 in property and $100,000 in liability. Here’s how raising the deductible affected the price: Deductible Annual Insurance Price Monthly Payment $100 $177.00 $19.75 $250 $170.00 $19.17 $500 $162.00 $18.50 Based on our comparison, putting the amount of the deductible away in a savings account and paying for the highest deductible can save you $15 per year. If you have a higher-value property amount, the savings can be greater.Home mortgage Protect your biggest investment Get personalized home insurance quotes by answering a few quick questions ZIP Code Hongshan, HB Location-Icon Created with Sketch. Your information is kept secure What brings you to Bankrate? 364925BF-22D7-405E-BBD3-A35489D76575 Created with sketchtool. Looking for a cheaper policyBuying/renting a new houseJust browsing Is this a new home purchase? Yes No Square Footage 364925BF-22D7-405E-BBD3-A35489D76575 Created with sketchtool. <1,0001,000-2,4992,500-4,9995,000+ Find matches QUICK FACTS 47D79854-EFBD-4BA8-9B92-D5A7629F8F80 $382/year average savings through Bankrate Two-thirds fraction 2 out of 3 homes are uninsured Home insurance contract 1 out of every 20 insured homes makes a claim each year Circle with checkmark 100% of homes need insurance before getting a mortgage Equipment like smoke detectors and a home security systemAdding safety and security equipment deters thieves and notifies you, your neighbors or a monitoring service of events like smoke, fire or water damage before they go too far. The sooner flooding or smoke is discovered and stopped, the less expensive the damage. Some insurers reward you for these preventive measures by offering small discounts.PaymentsPaying your annual premium will bring you a small discount and save you from having to manage another monthly bill. Most insurers will refund you the portion of the policy you haven’t used if you cancel before the year is over.Property value limitThe biggest expense you can control in your renters insurance is the dollar amount you’re covering your property for. Reducing the amount will also reduce your premium, but make sure you’ve included enough to cover the cost of replacing your most valuable personal property.Going back to the Geico comparison quote, here’s how changing the property value limit affects the policy’s price using a $250 deductible and $100,000 in liability insurance. Property value limit Annual price Monthly price $5,000 $83.00 $11.92 $10,000 $119.00 $14.92 $20,000 $170.00 $19.17 $25,000 $195.00 $21.25 $40,000 $274.00 $27.84 Keep these factors in mind when shopping for renters insurance, and remember to always compare quotes. Related Articles: Best Renters Insurance Companies Best Homeowners Insurance Companies Flood Insurance Guide How Does Short-term Rental Insurance Work?