When it comes to the cost of renters insurance, it can vary depending on the exact renters insurance coverage you’re paying for. In this guide, we wanted to give you a general idea of what you could expect to pay for a renters insurance policy.
According to Insurance.com rate analysis, the national average renters insurance rate for a renters policy with coverage limits of $40,000 for personal property, a $1,000 deductible and $100,000 worth of liability protection totals $197. This would average out to around $17 a month.
Now, what you end up paying for renters insurance is going to vary. The typical factors that determine how much you’ll pay for renters insurance include;
- Where you live
- Your credit history
- Your insurance coverage history
- Your renters insurance limits
Despite these factors, renters insurance is usually very affordable.
To get a personalized renters insurance quote, simply give us a call at 1-303-623-1997 and speak to one of our insurance agents. We’ll help you compare multiple quotes at once for Colorado renters insurance.
Minimum Renters Insurance Coverage
For those of you that are looking for a minimal amount of renters insurance, you do have a few options.
For college students living off campus, if you don’t have a lot of valuables or other assets, then you may find adequate protection with a very minimal policy providing a maximum of $12,000 to replace lost, stolen or damaged items.
In this scenario, the coverage would include $100,000 for liability, which is very important in the event that someone is seriously injured in your home and decides to file a lawsuit against you. If this happens, you could be legally responsible for medical bills and other expenses. A minimum policy like this could have a smaller deductible, usually around $500. While the total cost for minimum renters insurance coverage can vary as we discussed above, we’d estimate the total cost to be around $80-$120. Even so, we recommend calling us to get an accurate quote.
If you want to increase your personal property limits to $20,000, the nationwide average cost for that type of renters coverage would be around $150. While you could lower your monthly cost by taking a $1,000 deductible, you’re likely going to see a savings of only $10-$15 if you choose to do just that. Even so, you still may have to pay out-of-pocket for items not covered within your coverage limits.
When it comes to personal property coverage, the insurance experts recommend carrying at least $35,000 in total. If you add new assets later, you can always increase your property limits later as needed.
Mid-Level Renters Insurance Coverage
We understand that a “one fits all” policy is not realistic. Everyone is different and has different needs. For a mid-level renters insurance policy, you should expect to pay $150-$200 a year. This policy typically includes a maximum coverage amount of $25,000 for personal property, a $500 deductible and $100,000 in liability protection.
A lot of renters choose to increase their deductible to the $1,000 level while also increasing their property coverage to $50,000-$60,000. The reason they choose to do this is because the higher deductible helps to keep the premium from rising significantly. For example, the national average renters rate for $60,000 in property coverage, a $1,000 deductible and $100,000 in liability is around $250. While this policy would protect your electronics, clothing and other important items, you still may not be fully covered, such as high valuable assets like jewelry. If you want to ensure your jewelry is protected, you’ll need to buy an “endorsement” for that. We’ll explain so in just a second.
For a family that has a lot of belongings and assets, a renters policy with at least $50,000 in property coverage and $100,000 in liability protection is usually recommended. Now, if you choose to add $10,000 in personal property coverage you carry, your premium will likely increase in $20 increments.
A policy covering $70,000 in property, with a $1,000 deductible and $300,000 in liability costs an estimated $280 a year.
Higher-End Coverage Limits For Renters Insurance
To ensure you have more than enough renters insurance, you may want to consider a high-end coverage. The renters insurance coverage you ultimately choose is going to depend on the assets and property you have.
Let’s look at example. For a high-end renters insurance policy with $100,000 in property coverage and a $500 deductible and $100,000 in liability, the costs would be around $400 a year. If you need additional protection, you’d add $20 for every additional $10,000 in property protection you carry.
You also need to think about your liability limits. While the experts recommend $300,000 in liability protection for most people, you probably want higher limits if you have lots of savings or other valuable assets. You may want to buy an umbrella insurance policy which generally provides $1 million in coverage that pays out once your liability benefits are exhausted.
Endorsements For High-Value Items
While a basic renters insurance policy does include coverage for jewelry and other high-value items (furs, watches, collectibles, among other items), there’s limits your policy covers. What that means is that your renters insurance will only cover up to your limits.
To ensure you can get covered and replace your most valuable assets, you can purchase a separate endorsement (also referred to as “rider”) to fully cover their value. The endorsement’s amount is set by you and can come with a separate deductible which is similar in amount as the deductible on your main policy.
“These valuable items need to be ‘scheduled,’ which means a separate (endorsement) policy for each item. For example, insurance for jewelry is about one to two percent of the value of the item, so insuring a $100,000 diamond ring could cost between $1,500 and $2,000 a year.