How Much Does Renters Insurance Cost

| May 24, 2014 | 2 Comments

Cost of Renter’s Insurance

cost-of-renters-insuranceSome people may need clarification when it comes to what renters insurance really is. It is similar to homeowners insurance but it doesn’t cover the same things. Homeowners insurance is going to cover the entire property including the home and land. This will cover disasters such as a tornado, wildfire, flood, etc. Renters insurance will only cover the tenant’s possessions while they are living in that home. Both types of insurance are highly recommended but it is the renter’s responsibility to get their possessions covered. Because the cost of your possessions is going to be significantly lower than the value of your home, renters insurance is going to cost significantly lower than homeowners insurance, ranging anywhere from $55-$120 per month to cover an average of $25,000 in belongings.


Factors of Cost

The one major factor of how much renters insurance will cost you is the amount you want to be insured for. The average lowest amount that you can get covered for is $10,000 and that will cost as little as $10 per month, depending on your geographical location, the type of home, and your deductible. To cover as much as $100,000 with around a $500 deductible, you are looking at around $65-$100. In total for the entire year, an average person in the United States will most likely spend anywhere from $100-$500 per year to insure their belongings.

What’s Included

The determining factor on what is included in your policy is as simple as whatever is agreed upon when in the policy guidelines. Everything that is within the guidelines, typically clothing, electronics, and furniture, will be replaced with cash in the case of a disaster. Typically the only cost that is not included would be the deductible which the policy holder will be responsible for. The typical deductible for a $10,000 policy is $500 then any damages further than that would be covered by the insurance company.

The types of disasters that are typically included in all renters insurance include:

  • Fire
  • Ice & Snow
  • Smoke
  • Theft
  • Vandalism
  • Freezing
  • Water Damage
  • Riot
  • Windstorm

Ways to Save

Before you settle on an insurance company to sign with, be sure that you get multiple quotes. Do not choose the first company that you sit down with as you could find an even better deal the next day two miles down the road. There are multiple comparison websites where you can compare insurance companies in your area to find the best deal.


If you already have car insurance with an insurance company, they should be the first company you get a quote from as you are likely to get discounts for having multiple policies with them. Also consider how much value you would put on your belongings when choosing the coverage as the higher coverage you get, the more your monthly premiums will cost. Lastly, don’t forget to ask about any discounts you may be eligible for such as a student discount or a senior discount.