Lots of those who rent a home, whether it’s a house or apartment, may be looking at a renters insurance cost to see how this insurance product would factor into their household budget. Although there are averages for these kinds of costs, the cost of rental insurance varies according to what is covered, as well as a lot of other factors.
Average Cost of Renters Insurance
The bottom line is that renters insurance is often not terribly expensive. Many experts put an average somewhere near $30 per month, or one dollar a day. One national agency puts the average renters insurance cost as low as $12 a month for $30,000 of coverage.
Factors in Renters Insurance Costs
With the above in mind, renters insurance costs always change based on specific conditions that insurance companies look at in an underwriting process. In areas of the country more vulnerable to natural disasters, renters insurance premiums may be higher than the average. The same holds true for areas with high crime rates.
Tenants also need to look at what renters insurance will cover. Not all renters insurance policies cover the main hazards that policyholders are thinking about when they sign on with an insurer. Fire and earthquake, flood or theft may not be covered under the terms of a renters insurance contract.
Renters also need to read the fine print about how possessions will be reimbursed in the case of a claim. A renters insurance agreement may include requirements for detailed record-keeping on the purchase of furniture, garments and other possessions in order for these to be covered in the event of a loss and subsequent claim by the policyholder.
More About the Cost of Renters Insurance
Another element that factors into the cost of a renters insurance policy is a deductible. A deductible is something that is standard in almost all insurance policies. It basically shifts more of the payment burden to the policyholder for compensating on any claim is made. For example, with a $1000 deductible, the renter would have to pay $1000 on a property loss incident before the insurer would pay the balance. Each household signing onto a renters insurance policy has to look carefully at the deductible as a means of lowering a premium, while keeping in mind that they would be responsible for this amount in any loss situation.
Why Get Renter’s Insurance?
Agencies that look into why tenants fail to get renters insurance find two things: vague ideas of cost keep many from recognizing that renters insurance is one of the cheapest insurance products on the market. Another big obstacle to a lot of renters is the misconception that a landlord’s property insurance would pay out for their loss in a disaster. In the vast majority of cases, this is untrue, and renters without a renters insurance policy would get no compensation for loss of their possessions. Tenants without a good renters insurance policy for their home should look into getting a renters insurance policy for knowing that their investment in their homes is covered.