If you rent a home or apartment, you may be required to have renters insurance. Renters insurance is important coverage that offers additional protection on top of your landlord’s coverage. It protects everything inside your home or apartment, such as jewelry, electronics, and personal items. Renters insurance also protects you if you’re deemed liable for something that happens inside your rented home.

Understanding the Cost

You may be concerned about whether or not renters insurance will fit into your budget. However, you should know that renters insurance is the cheapest insurance you can buy. It’s not like auto, homeowners, or life insurance, which can cost hundreds of dollars per month. The average cost of renters insurance is around $15 per month. You could pay more or less, though. Several factors determine the cost of renters insurance:
  • Location. The most expensive states are ones that have frequent hurricanes and floods, so where you live matters.
  • Coverage amount. It may be better to have more coverage, depending on the value of your possessions. Keep in mind that your renters insurance cost per month is based on your coverage. The difference between $25,000 and $55,000 in coverage may be around $14 a month.
  • Credit score. The better your score, the more money you’ll save. A good credit score shows financial responsibility, so stay on top of bills.
Now that you know how much renters insurance costs, you can prepare for this expense and shop around for the best coverage.