How Much Is Renters Insurance? (2024)

FAQs

How Much Is Renters Insurance? ›

The typical renters insurance policy offers $100,000 in liability coverage. For renters, this amount is often sufficient. However, if you entertain company frequently at your home or if your assets exceed your limit, you should consider a coverage amount equal to at least the total value of your assets.

The average renters insurance cost in the U.S. is $148 per year, or about $12 per month, according to NerdWallet's latest rate analysis. We based this estimate on a policy for a hypothetical 30-year-old tenant with $30,000 in personal property coverage, $100,000 in liability coverage and a $500 deductible.

The average cost of renters insurance is about $15 to $20 per month¹. However, what you end up paying depends on a number of factors.

According to the Investopedia article mentioned above, most renters insurance policies cover personal items, living expenses, and liability insurance (typically from $100,000 to $300,000 in damages).

Renters insurance coverage is almost always worth it. It is much more affordable than other policies, including home or auto insurance, and provides valuable financial protection. Even if you can save enough money to cover unexpected loss, renters insurance may be worthwhile.

Some location-based factors that impact renters insurance rates can include: The rate of crimes, especially theft, in your ZIP code. The weather and climate in your area, since locations prone to fires, storms and hurricanes are riskier. The age and condition of the property you live in.

Renters insurance typically covers fire, windstorms, lightning, explosions, theft, and vandalism. Your personal property, personal liability, additional living expenses, and guest medical expenses are usually covered under your renters insurance.

You'll choose your deductible when you buy a renters insurance policy. A higher deductible means your claims will cost you less money out of pocket. Typically, renters insurance deductibles are $500 or $1,000, but companies often provide a range of options.

In most cases, yes, your insurance premiums will increase after filing a renters claim. As it recalculates your premiums in the wake of a claim, your insurance company will generally consider the type, amount and frequency of claims. The more often you file claims, the riskier you are to insure.

How much renters insurance should a landlord require in Texas? ›

So, how much renters insurance should a landlord require a tenant to have? The best practice is to require a renters policy that covers the replacement cost of the tenant's belongings and provides at least $100,000 in liability coverage. This protects both parties' interests in the event of an unforeseen circ*mstance.

Personal Liability – Covers you for any damages for which you're held liable, and most landlords will require you to get at least $100,000 of this type of coverage. Medical Payments to Others – Covers medical payments for any injuries that have occurred on the property, and it will usually have a minimum of $1,000.

Renters insurance is a type of property insurance that pays to replace your things if they're damaged, vandalized or stolen while you're renting. It protects you from dealing with the financial fallout of unexpected catastrophes like fires, electrical surges, sewer backups and explosions.

Additional Expense

One of the main cons of getting renters insurance is that it can be an added expense for tenants already paying rent and other living expenses. This can be a deterrent for some tenants who may feel that they cannot afford the additional cost of a renters insurance policy.

Many renters feel that since they don't own the property the live in, there is no need for insurance. Surveys have revealed that over half of those who rent a house, apartment or condo have not bought renters insurance.

Renter's or tenant's insurance protects renters who experience unexpected property damages. In our latest research, we found that 55 percent of renters had renter's insurance policies. This is an estimated 61 million U.S. renters.

How Much Does Renters Insurance Cost? Renters insurance costs an average of $157 a year for a policy with $15,000 of personal property coverage. The average cost of renters insurance for a policy with $30,000 is $199 annually, and a $50,000 policy costs an average of $260 a year.

The most common renters insurance deductibles are $500 and $1,000, but they are usually available in amounts ranging from $250 to $2,500.

Cite typical costs for Renter's Insurance (as low as $12 a month and typically $20-$30 a month) and ways to lower cost.