How Much Do Renters Insurance Cost?

If you are afraid of losing your valuable properties, insurance is a great option to ease your anxiety and to protect your investment. Landowners usually do not include in their insurance coverage the tenant’s property. Therefore, tenants should assess whether to avail renter insurance or not as a protection.

Renters insurance premium covers the repair or replacement of the personal property in case of loss or damage caused by unexpected circumstances. The basic policy usually insured the policyholder against common causes of loss such as theft, civil commotion, water or heat damage, vandalism, and lightning.

insurance calculations

Average Cost of Home Insurance

Based on the data provided by the National Association of Insurance Commissioners, the renter insurance has a benchmark price of $15 to $30 per month including riders and other provisions. But based on Value Penguin website, the renter insurance cost is around $9.58 to $20.33 per month throughout the country as of 2017.

Shopping for Homeowners Insurance

It is important to assess first the necessity of the renter insurance. If you have very expensive electronics and you are currently renting an apartment in a risky area, you will probably need renter insurance. The most basic starting point in deciding to buy insurance is to simulate the worst case scenario and your capability to stand up financially.

If you think that you are at risk and you can’t recover from the devastating scenario, you most likely need insurance for the protection of your investment. Therefore, the monthly expense of the insurance is not hard to accept as a necessity. There are insurance companies you can request for quotation online like Allstate.

Factors Affecting the Renters Insurance Premium Price

Level of Coverage

The overall coverage depends on the assessment and the desired protection of the policyholder. There are online tools like the Allstate calculator to estimate and determine the level coverage. The basic policy only covers the replacement of the personal property and liability. But the bottom line, the policyholders have the option between replacement cost and actual cash value.

The replacement cost covers the value of the property based on its initial price. The value of the new property requires the receipt as a supporting document. Meanwhile, the actual cash value covers the value of the property based on the time of loss. In short, it is computed as the initial value of the property minus depreciation until the time of loss. Therefore, replacement cost coverage is more expensive than the actual cash value coverage.

Meanwhile, personal liability covers property damage or injuries caused by accident within the household of the policyholders. The scope of the coverage is the medical fee for the treatment of the injured party and legal fee for protection to settle the accident in court. Medical liability does not cover the policyholder or any family members. It only covers the treatment of the victim or injured party caused within the policyholder’s property.

Additional Provision

Riders or floaters are the additional coverage that the policyholder can include in the policy. The additional protection usually covers extreme weather condition like earthquake and flood. There are also provisions to cover fine jewelry, paintings, and other collectibles. The addition of rider in the policy can increase the monthly premium cost and the level of protection.


The apartment insurance cost is dependent on the location or residence of the policyholder. Insurance in cities that have high crime rates and proneness to natural disasters is more expensive. The National Association of Insurance Commissioners and the United States Census Bureau have available data to determine states with high and low monthly premium cost.

States that have the cheapest rate are North Dakota, South Dakota, Wisconsin, North Carolina, and Montana with an annual renters rate about $115 to $145. States such as Mississippi, Louisiana, Alabama, Oklahoma, and Texas have the most expensive average cost of renters insurance which is around $228 to $244 annually.


Deductibles refer to the upfront payment to activate the insurance coverage during the claim. It is an amount that the policyholder needs to cover straight out of his or her pocket to claim the replacement expense. The high deductible amount usually yields lower premium cost and vice versa. Therefore, policyholders should assess the amount to declare based on risk, the total value of the property and duration.

Policyholders should determine the worth of the properties for declaring the right amount of deductibles. Depreciation can significantly affect the value of the gadgets over time. There is also concern regarding the worthiness of the monthly premium cost versus the percentage possibility of risk of loss. The chance of property to be lost can vary because of different circumstances.

But what is the importance of deductibles? Almost all of the insurance companies require the policy to have deductibles. It is for the protection of the insurer from fraud and multiple claims from the same policyholder. The deductibles are usually around $100 to $1,000 depending on the insurance company.


Insurance companies usually provide discount rates to entice the customers. Allstate provides a multi-policy discount. It refers to the discounted apartment insurance cost if the policyholder avails the auto insurance as well.

There is also a 20% discount for policyholder if there is no claim within the year. Also, a discount for the senior citizen is available in some insurer. Retired discount is 25% off at the premium price.

Additional Information

There are policy providers that provide coverage such as loss of property when traveling. It is a good coverage since the risk of loss or damage is higher when outside the rented premises. Students who have expensive laptops or travelers with expensive equipment like a camera can take advantage of such coverage.

Therefore, to optimize the insurance right for you, it is important to consult your financial advisors. There should be full disclosure between you and your advisor to review all the possible options for your coverage. Also, make sure that you are consulting licensed professionals with a credible background.

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