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How Much Does Renters Insurance Cost?

Renters insurance costs about $339 per year with average rates ranging from $75 to $1,381 per year in the US for 2020 according to Insurance.com.

According to QuoteWizard, “the average renters insurance policy costs $10 to $22 a month, which usually includes around $25,000 of personal property protection and $100,000 of liability coverage.”

Understanding Renters Insurance

The purpose of renters insurance is to offer financial protection when you are renting an apartment, house or condominium. The policy will pay to repair or replace your belongings in the event they are stolen or otherwise damaged, up to the amount stated on the limit of your policy. Other advantages of renters insurance include:

  • Payment of medical bills if you have a guest who sustains injured that are your responsibility
  • Normally includes increased living expenses should your residence become uninhabitable as a result of a catastrophic incident
  • Assists in paying for damage you cause to the property of someone else

Average Renters Insurance Costs By Location And Level Of Coverage

Nationwide, the average cost of Renters Insurance is $326 (roughly $27 per month) and this typically includes $40,000 for personal property damage, a deductible of $1,000 and liability protection up to $100,000. However, coverage amounts, and costs can vary depending on where you live and the level of coverage you want to pay for. Here are some typical examples:

Minimum Coverage

A basic policy may be ideal if you do not own many possessions or are a college student. Such a policy usually provides up to $12,000 for personal property damage and includes $100,000 of liability coverage – extremely helpful should someone suffer an in your residence as this will cover the medical expenses. These types of policies often have a deductible of $500 and although costs vary depending on your credit worthiness and your location, the annual cost should be around $100. If you wanted a higher level of coverage for personal property damage such as $20,000, the annual cost would rise to an average of $252. However, the premium cost can be reduced by $24 if the deductible is raised to the $1,000 level. This needs to be balanced against items you may have to pay for in your out of pocket expenses if they are not covered by the policy. Remember the limits can always be raised as can liability coverage.

Mid-Level Coverage

This policy often suits the needs of a great deal of people and costs around $200 per annum. Coverage often includes up to $20,000 for personal property damage, $100,000 in liability protection and a deductible of around $500. It is not uncommon for renters to raise the deductible total to $1,000 and raising the property up to $60,000. The higher deductible rate helps to keep the price of the premium in check. For example, $60,000 in property damage coverage, $100,000 in liability protection with a deductible of $1,000 costs a national average of $418 or around $35 per month. This will cover most household items, though high-end items like jewelry may need additional coverage that we will cover later on.

A younger family with more material possessions is recommended to carry at least $50,000 in property damage coverage and a minimum of $100,000 of liability protection. You can expect your premium to raise up to $20 for every $10,000 of personal property damage you carry. It is also frequently recommended to raise the liability protection coverage to $300,000 and this may cause a premium increase of up to $50 per annum. If you have a policy with $60,000 in property damage coverage, $300,000 in liability protection coverage with a deductible of $1,000, the average national cost should be around $36 per month.

High End Coverage Limits

As we mentioned above, you can expect your premium to raise up to $20 for every $10,000 of personal property damage you carry and you can expect your premium to raise up to $20 for every $10,000 of personal property damage you carry. If you are a wealthier renter, coverage can go up to between $500 and $1,000 per year. Therefore, it is important to consider liability limits. Higher limits may be worth it if you have plenty of savings and other assets that are valuable. One answer may be an umbrella policy that conventionally offers $1,000,000 in coverage once your liability benefits have been maxed out.

High Value Item Endorsements

If you have a typical renters insurance policy, coverage is usually included for high-value items like collectibles, watched and furs – however, there will be limits on the level of policy coverage as per the terms of the contract. To make sure expensive items are capable of being replace, a rider (a separate endorsement you may purchase) can be used to fully cover the value of the item or items. The amount of the endorsement is set by you and may also have a deductible that is separate from the one on your conventional policy. Cost wise, the policy should be around two percent of the total worth of the item or items. You can also choose what level of deductible is best for your budget. The higher the deductible, the lower the monthly premiums. The reverse is also true.

Buying Renters Insurance

Here are some things you can do to ensure you are getting the optimum rental insurance coverage:

  • Make a list of your personal items with their value as well as the cost of replacing them with something equivalent in quality and price. This will give you insight into the level of personal property damage coverage you will require
  • For your personal items choose the replacement value option. If your television set were destroyed it would be replaced with a brand new one of similar dimensions and quality. This means you will get the full cost to physically replace your damaged items. They are costlier than actual cash value policies, but the benefits are usually worth the extra expense
  • Deductible totals for personal property damage usually range from as little as $500 up to $2,500. You have to pay the deductible in full before your policy starts to pay for replacement or repair of your items
  • Make a choice of the level of liability insurance you wish to have. As you know, this covers the costs of medical expenses should someone become hurt on your property or at your home as well as covering damage caused by yourself to the property of others. Legal fees are also covered should you be sued as a result of someone becoming hurt on your property or at your home. It is recommended you look at limits of up to $300,000 to $500,000. While it is true, a policy with a limit of $100,000 will be less costly, the benefit can easily be maxed out if someone needs hospital attention
  • You need to pay attention to additional living expenses you may incur. This is not offered by all insurers or all levels of coverage yet may be vital if you need to live in a hotel or other accommodation for a time
  • You can compare quotes once you know the liability and property coverage you require. Remember, renters insurance is one of the most affordable kinds of insurance available as we have shown from the examples given. The company you have your car insurance with may offer some bundle deals but be sure to get good quotes from at least a trio of reputable companies

Remember paying a little more up front in premium cost may also give you greater coverage and less out of pocket costs from having a higher deductible. With national averages for rental insurance being around $27 per month, a really nice policy with higher benefits can be had for around just $26 per month!

Renters Insurance in Scottsdale

Renters insurance in Scottsdale is a group of coverages to protect renters living in an apartment or home. Renters insurance typically includes coverage to protect you, your belongings inside the residence, and any living arrangement costs after a covered loss.

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