If you are renting a house or an apartment, don’t get surprised when the landlord requires you to get a Renters Insurance. As a tenant, the insurance protects you and your personal belongings from damage or unexpected losses incurred during your stay in the abode that you rent for a period of time.
But to give you a clear definition, Investopedia defines a renters insurance as a form of policy that “protects against losses to the tenant’s personal property within the rented property”. It also provides protection from the expenses you spent on liability claims. An example would be injuries and other accidents that happen on the property.
However, the insurance does not apply if the injury is caused by the property’s facilities or structural issues. Such circumstances are under the policy of the landlord’s insurance.
Cost of Renters Insurance
When it comes to the fees, the average cost of renters insurance, as provided by the National Association of Insurance Commissioners (NAIC), $184 per year, with an approximate monthly contribution of, at least, $15. Depending on your location, the monthly premiums have a total coverage ranging from $30,000 to $50,000, with a deductible worth of $500 to $1,000.
Meanwhile, the average renters insurance premium by state ranges from $120 to $250 per year, having as Mississippi with the most expensive price and South Dakota at the lowest end. This is still according to the data of NAIC.
But to give you an accurate calculation for your renters insurance policy, it is ideal to consult a legit insurance agent or an insurance firm. It is much better to get quotes first before purchasing an insurance policy.
Renters Insurance for College Students
If there is anyone who needs a renters insurance, that would be a college student. Although there are dormitories in college institutions, there are many cases when college students tend to live outside the campus and rent an apartment. They bring with them loads of personal stuff like clothes, books, electronic gadgets, furniture, and even a bicycle, and it is the responsibility of the renter to provide protection for their properties.
In that regard, the average apartment insurance cost for college students, according to NAIC, is between $15 and $30 per month, depending on the location, the rental unit size, and the possessions of the insurance holder. But renters insurance may not be necessary if a college student is below 26 years old, enrolled in classes, and residing in a housing within the campus. Such student can be covered by the homeowners or renters insurance policy of his or her parents.
“If a college student is living in an off-campus house or apartment with one or several roommates, they may be able to purchase a renters insurance policy together,” NAIC further stated in its Consumer Alert article.
Other Factors Affecting the Renters Insurance Cost
Generally, renters insurance is provided insurance companies, and the rates and policies set by these firms vary significantly. In most cases, however, they calculate the renters insurance cost based on many factors. According to Trusted Choice, these are the most common factors that may be included in the calculation:
– the coverage type you prefer
– the amount of coverage you need
– the deductibles
– the location of the rented property
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