If you’re a renter, you’re used to kicking back while your landlord handles any problems that pop up in your home. Ah, the good life! Now for the reality check: Your personal belongings are your responsibility. If a fire destroys your valuables, or if you’re robbed, you’re on your own. Unless, that is, you have renters insurance.
But what should you expect to spend to protect your stuff? We’ve got answers.
How much does renters insurance cost?
On average, renters insurance costs $15 to $30 per month. But your actual renters insurance quote depends on both the value of your belongings and where you live.
If I submit a claim, will I have to pay out-of-pocket costs?
Yes. Renters insurance policies almost always include a deductible—a set amount that you must pay before your coverage kicks in—that tends to range from $250 to $1,000.
What kind of rental insurance coverage can I buy?
There are a few different types of renters insurance. Here’s a quick rundown:
- Personal property damage coverage
If your valuables are stolen or damaged, personal property damage coverage pays to replace or repair them. The average renter needs $20,000 to $30,000 of coverage, but to find out exactly how much you need, tally up the value of your belongings. Handy apps like Sortly or Encircle make it a snap.
You can buy coverage for either the replacement cost of your belongings, or for their actual value. If your two-year-old laptop is stolen, and your policy covers only its actual (depreciated) value, you’ll have to pay extra to buy a new one. A replacement policy costs a few dollars more per month, but is usually worth it.
What about your collection of rare graphic novels? Your Tiffany & Co. bling? Some pricey items may not be covered, so make sure you talk to an agent about getting a high-value item rider. If you do buy a rider, your monthly premium may rise to between $40 and $90.
- Personal liability and medical payment coverage
Personal liability coverage pays your legal expenses if someone gets hurt in your home and decides to sue. Meanwhile, medical payment coverage might pay for medical expenses for any guest who gets injured in your unit, but there are exceptions to what is covered in some cases of injury. Be sure to talk with your insurer so that you understand what is and isn’t covered.
- Loss of use coverage
If your home gets so damaged that it’s uninhabitable and you have to move out, loss of use coverage pays for your lodging, food, and certain other living expenses while you’re displaced. It’s best to get at least $10,000 in loss of use coverage.
Now that you know about the different types of renters insurance and how much it all costs, here’s a tip that’ll save you a few dollars each month: If you buy your auto and renters insurance from the same company, you’ll probably get a discount. Speak with a AAA insurance agent to learn more.