What does typical renters insurance cost?

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If you are renting, renter’s insurance is potentially critically important to protecting yourself from financial loss (replacement or repair) that may occur to your belongings especially from loss due to fire, flood, or intrusion.

What is renters’ insurance?

Renters insurance is essentially insurance designed to help protect you (the tenant) in case something happens to your personal property and/or you are liable for an act of damage.

It can provide a safety net and can help protect you from having to shell out a significant sum of money in the future – making it easier for you to get back on your feet.

Depending on the type of insurance you take out, expenses like hotel bills may be covered if you cannot live in your rental in the event of a disaster.

How much does renters’ insurance cost?

Renters insurance is actually affordable. An Insurance.com analysis revealed the national average cost of renters insurance is about $27 per month for $40,000 personal property coverage, $100,000 liability protection, and a $1,000 deductible. If your monthly rent is $1,200, this is less than 3% of your rent.

The average cost for renters insurance in Pennsylvania is $13 per month. But again, this will depend on a variety of factors. If you want to know how much you would have to shell out approximately, look up the average in your zip code and make sure you get a quote from a reputable insurance agent or company.

How to calculate your insurance needs?

Before taking out renters insurance, you may want to estimate the value of your belongings so you can ensure proper coverage. If possible, store receipts of items you have bought because this could come in handy when looking to verify and support your claim.

What factors influence the cost of renters insurance?

The cost of renters insurance can vary based on factors such as –

  • How much coverage you need – the amount you want to protect your contents for
  • Your deductible – how much you pay out of pocket before the coverage kicks in
  • The location of your rental property – higher crime neighborhoods may cost a little more than low-incident neighborhoods
  • Type of unit – typically single-family homes are more expensive than smaller units or apartments because you may have more contents in a larger space
  • Claims history – any past claims can affect the cost of insurance in the future

Generally speaking, it probably makes sense to budget for a monthly cost between $25 and $75 per month for a typical apartment renter, but the actual cost is based on how much coverage you want, your deductible payout, and other factors. Choosing a higher deductible generally helps to keep your premium costs lower.

The price of renters’ insurance is affordable, especially when you think about the money you would have to pay in the event of a loss. Some apartment buildings may even require renters’ insurance.

It’s important to ask questions and always make sure you read and understand the entire policy, what is covered and what is excluded. It’s also important to make sure you keep the policy current and do not let coverage lapse. Renter’s insurance may be a personal choice, but the benefits compared to the cost can be tremendous in the event of a covered loss.


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