How Much Does Renters Insurance Cost?


Many people are hesitant to look into renters insurance as they assume it is expensive. Assumptions are dangerous, as they can be inaccurate, and in the case of renters insurance, this is the case. Renters insurance is affordable but does vary in price based on a few factors.
Here is your breakdown of what insurance companies take into account before giving you a quote and subsequently what renters insurance will cost you.

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1. Your Zip Code

The neighborhood you live in is a huge factor in the insurance quote you are going to receive. Do you live in an area prone to floods? Are you at risk for earthquakes? Some states cost more than others. Louisiana for instance is the most expensive state for renters insurance.

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Your location allows insurance companies to determine the amount of risk involved. All of these risks are factors taken into consideration before providing you with a quote.

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What are the crime rates in your new community? Renters insurance will cover you if your belongings are stolen, making this simple and unlikely event a stipulation in the amount of your quote.

2. The Coverage You Require

Are you interested in basic coverage? Do you have many valuable items and want to increase your coverage limit to cover those specific goods? The amount of coverage you need is a factor in your insurance quote. You can get a more inexpensive quote by not declaring these items to the insurance company, but if an issue does arise, you will not be covered or receive any compensation for those items in question.

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3. If You Have Pets

Your furry little friend will have an impact on the total amount you will be quoted for renters insurance. This can depend on the size of the animal, the breed, and how many animals you have in total. It is important to disclose information about your pets as not doing so can void your policy in its entirety.

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4. Your Deductible

The majority of policies have a set deductible if certain events were to occur. A deductible is an amount you are required to pay out of pocket before your insurance plan kicks in. By increasing your deductible amount, you can reduce your monthly payment amounts for renters insurance.

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5. Previous Claims

Insurance companies will look into your past. Similar to car insurance increasing with the number of accidents you get into, renters insurance will also increase if you have made previous claims. The more claims you make, the more you seem like a risky investment and you will likely see evidence of this when you receive a quote.

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6. So What Does Renter’s Insurance Cost?

The average renters’ insurance costs between $12 – $18 per month. These numbers do vary and that is due to all the previous reasons and more. Getting a quote is easy and for all you know, the policy you get today can save the shirt on your back tomorrow.