Roost strives to keep its information accurate and up to date. This renter insurance information may be different than what you see when you visit a financial institution, service provider or specific product’s site. When evaluating renters insurance offers, please review the insurance institution’s Terms and Conditions.
Is it worth it to get cheap renters insurance?
Yes, minimum liability only policies can satisfy most lease requirements and protects you against expensive lawsuits and medical bills.
Adding a small $5000 personal property portion can also be great to have. Your stuff will be covered from theft no matter if it is stashed in your apartment, in your car, or at a friend’s place.
How are renters insurance premiums calculated?
1. The more stuff you have the higher the premium
Do you have $5000 or $40,000 worth of stuff to cover? Take inventory of all your belongings, bike, TV, bed, etc, add up their value to decide how much coverage you actually need.
2. Where you live will affect your rate
If you live in a high-crime area or an area often hit by natural disasters like flooding or tornadoes, you’ll pay a bit more. You may even need to add extra coverage for natural disasters like hurricanes.
3. Low deductibles equal higher premiums and vice versa
This is the amount you pay out-of-pocket before the renters insurance policy pays anything. The higher your deductible, the lower your premium. Just be careful to not set the deductible higher than you can comfortably pay if you need to file a claim.
4. Replacement cost vs. actual cash value
“Replacement cost” means your provider reimburses you for the cost to fully replace (at the current going rate) whatever was damaged or stolen.
“Actual Cash Value” is when your insurer reimburses you for how much your items are worth today. Because anything you buy tends to lose value (“depreciate”) over time, this type of policy means you’ll have to add in some of your own money to buy a new item to replace the old one.
5. Bundle your renters insurance to save money
The more types of insurance you have with one company, like car and renters, the more likely they are to offer a discount.
6. Fewer claims filed saves you money
If you’ve filed claims in the past, your rate may be higher. While this is frustrating, it is a factor that influences your renters insurance premium rate because insurance companies consider you to be higher risk.
7. Good credit scores can mean better insurance rates
Some renters insurance companies will run a credit check on you when determining your premium. If your credit is poor or marginal, you may have to pay a higher rate.
6 Ways to save on the best renters insurance
While there are many factors that may raise your rate, there are ways to lower your rate too. The best renters insurance companies offer multi-policy discounts, safety discounts, and more ways to save. Here are some of the most common:
1. Policy discounts:
- Association discount: If you are a member of the military, are retired or are a member of a credit union.
- Safety discount: If you have things like deadbolts, fire sprinklers, and smoke detectors.
- Claim-free discount: If you haven’t made a claim in a year or more.
2. Policy bundles
If you use the same carrier for renters and auto insurance, the best renters insurance companies will offer discounts.
3. Raise your deductible
Many people have renters insurance for years without filing a claim. If that’s you, consider saving on monthly premiums by increasing your deductible.
4. Reduce your personal property coverage
You may be paying for more coverage than you need. Take inventory of all your belongings and add up the value. Chances are, you are over insured.
5. Prepay for a year at a time
The best renters insurance companies will give you a discount when you pay for a full year’s worth of insurance premiums in advance or if you set up autopay.
6. Shop around
Sometimes insurance goes up a little bit each year or your situation changes. If you shop around, sometimes you can find an equivalent policy with a new company, for a lower cost.
What does the best renters insurance cover?
Personal property coverage
Personal property coverage helps reimburse you if your stuff if it’s stolen, damaged, and/or destroyed by a covered event.
Liability and medical expenses
This is for financial risk if someone is accidentally injured and you’re at fault. It’s available if something happens at your place or somewhere else.
Additional living expenses or loss-of use coverage
It takes care of accommodations if you can’t live in your home due to a covered event.
Some plans also include stolen credit card protection, lock replacement, hurricane coverage, military uniform replacement, and more.
How much does renters insurance cost?
The average cost of renters insurance is $12-18 per month for policies that offer between $10,000-$25,000 in property protection.
Why do landlords require renters insurance?
Landlords usually require renters insurance to avoid liability claims from tenants.
The best renters insurance policies also cover:
- Protection against property damage: If you’re responsible for damage to the property, landlords can make a claim against your renters insurance to pay for the damage.
- Relocation expenses: Some renters insurance policies will pay for the cost of temporary housing or relocation caused by covered disasters like mold making your apartment uninhabitable.
- Damage or injuries from pets: Many renters policies cover damage or injury caused by your pets to other people’s properties, like if your dog bites someone. Read carefully, though, policies don’t often cover damage that your pet does to your own apartment.
If your landlord requires you to have renters insurance, you’ll likely see a clause in the lease like this:
“Lessee is required to provide proof of active renters insurance within 14 days of lease start date.”
Why renters insurance is worth the money
Averaging at $12/month but as low as $5/month, renters insurance is some of the most accessible coverage you’ll ever buy.
Minimally you might want to consider a liability policy to protect against lawsuits and out-of-pocket expenses due to property damage.