Having renters’ insurance is a no brainer! But choosing the right policy requires a little more thought. Although this type of coverage typically costs much less than homeowners’ insurance or auto insurance, you still want to have all the coverage you need. While keeping an affordable premium. Fortunately, we’ll share some tips on what to look for and how to balance the cost.
How Much Does Renters’ Insurance Usually Cost?
Well, that depends on where you are and how much insurance you actually need, but generally this type of policy is very affordable. Some companies quote prices as little as $5 per month. While other policies can be as much as $50 per month (or more). The average falls somewhere in the middle with premiums ranging between $12 and $25 each month. Keep in mind, most insurers offer additional discounts if you pay your premium on an annual basis—as opposed to monthly—or if you bundle your renters’ insurance with other coverage, like your auto insurance.
Still, most renters consider this policy surprisingly affordable! Since you’re only covering your possessions into the apartment, condo, or house you’re renting, the premium is much lower. Your landlord should carry additional insurance to protect the building and installations, but your risk is limited to exclude these features. Your policy will still cover some liability, in case a guest is injured on the premises. But again, this overlaps some with the owners’ coverage.
What Else Affects the Cost?
Before determining your particular premium, many insurers evaluate a few key factors. Including the location—specifically the zip code—since some areas are more vulnerable to vandalism and other crimes. The type of residence you’re renting also influences your cost. Apartments are generally less expensive to insure, especially in large (secured) complexes, where theft is less common. Single-family homes, duplexes, and even condos cost a little bit more.
Let’s not forget about your personal information and how that factors into your renters’ insurance! Did you know insurance companies can look at your credit score or even something called an insurance score? Individuals with high scores are considered to be a lower risk, so you can potentially save on premium that way. As a pet owner, though, you may be required to pay more to offset the increased liability your cat, dog, or other companion can bring.
If you’re actively looking for ways to lower the cost of your renters’ insurance, you’ll want to look at your limits and deductibles. The limit describes the maximum your insurer will pay to replace your possessions in the event of theft, vandalism, or even a fire. We want this number to be high enough that it covers all your essentials. But not so high that you’re paying for coverage you don’t need.
The deductible is the amount you’ll be responsible for if something happens. Let’s say, for example, someone steals the electronics from your living room. All in all, you’ve lost about $2,500 worth of equipment. With a $500 deductible, you’ll pay the first $500 in replacement costs. Then your insurance company will cover the other $2,000. If you have a $1,000 deductible though, you’d be paying $1,000 out-of-pocket in the same situation. However, you’d also be paying less each month for your plan. So, while you can lower your premium with a higher deductible, you should keep more in savings to cover the chosen amount if something happens.
For more information on affordable renters’ insurance, contact Freedom Insurance Agency! We can help you find the right policy for your neighborhood, your type of residence, and your financial situation. We’re appointed with numerous insurers throughout Maryland, so we can shop rates on your behalf! Don’t risk paying more for your coverage. Consult with our knowledgeable insurance agents today.