What Is the Average Cost of Renter's Insurance?

Whether you're renting a condo, apartment or a house, consider protecting your valuables and offsetting the cost of damage to personal items with renter's insurance. Renters insurance protects your personal property, including furniture and clothing, in the event of a fire or other damaging events that were out of your control. Most landlords already carry homeowners insurance coverage to protect the building against general damages, but renter's insurance provides additional protection for items that are not covered under your landlord's insurance policy.

Here's what you need to know about getting renter's insurance, and the average cost of this type of extended insurance coverage:

How Renter's Insurance Works
Renter's insurance provides varying levels of protection for all of your furniture, clothing, electronics and other personal items you keep inside your rental property. If your personal items become damaged from a fire, plumbing leakage, a windstorm or your home is burglarized, renter's insurance will compensate you for the amount of the loss or damage up to the amount indicated on your insurance policy.

Some of the different types of coverage available with renter's insurance include:

- Personal property protection
- Personal liability protection
- Cost of additional living expenses if you are forced to leave your apartment under a covered hazard
- Cost of alterations and redecorating after damage from a covered hazard
- Fire damage protection

Cost of Renter's Insurance
Renter's insurance is typically calculated based on the value of your property. This is why average costs vary significantly depending on where you live and what type or property you are insuring. The average cost of renter's insurance can be around $10 per month or more, depending on the level of coverage you choose and where you live. You can shop around with several insurance providers to find a policy that meets your needs and budget.

Many insurance providers also offer additional coverage, such as insurance for valuable items or coverage of the cost of replacing items in your apartment without deducting for depreciation. These plans will add to the cost of your insurance premium and are typically purchased separately.

You can purchase renter's insurance not only for the apartment or home you currently live in, but also for any other rental properties, such as a second home, under your name.

It's important to keep in mind that a higher deductible on the renter's insurance policy typically means a lower premium, but you will be responsible for paying for all damages up to the deductible amount. If you are looking to lower the cost of your renter's insurance but still want to have some protection, consider choosing a policy with a higher deductible.

Sources:
Travelers.com: Renters Insurance
Renters Insurance