What does renters insurance cover?

Renters Insurance is policy that can cover various things like bodily injuries, theft, water back-up damages, some natural disasters and more in a rented property. If you are renting a home or apartment, then renters insurance will be recommended to protect your belongings and space in the event of an accident.

Renters definitions:

This helps protect your clothes, furniture and other items in a covered lost.

Loss of Use
Is able to provide reimbursement for additional living expenses in the event that a covered lost will prevent you from living inside your home.

Personal Liability
This will help to pay for covered damage or bodily injury in accident that occurs inside the home.

What does renters insurance typically cost?
Average renters insurance in the U.S is $156 per year, which is about $13 per month. A policy like this typically has a $30,000 in personal property coverage and $100,000 in liability coverage with a $500 deductible.

What determines your renters insurance cost?
Lots of carriers determine their rates differently. Below are the most common factors that carriers use to determine your rates.

Where you live
If you live in a region that is prone to natural disasters wildfires, hurricanes or tornados then you are most likely to pay more for renters insurance. You are more likely to pay more if you live in a high crime area.

Previous Claims Record
If you have filed claims before in the last 3 to 5 years, even though its with a different company, the current insurance carrier will most likely see you as a bigger risk and may raise the insurance premiums.

The Coverage limits
Base on the coverage you need, the more your policy will cost you. Example if you are renting a 2 bedroom house will usually pay more for renters insurance as opposed to a single person renting a studio.

Your Renters Insurance deductible
You can lower or raise your insurance premium by choosing the deductible amount. The higher the deductible the lower the insurance premium. Deductible is the amount you pay for the claim before the insurance carrier covers the other portion.

How can I get renters insurance for a low price?
There are ways to save on renters insurance, below are the most common ones.

Multiple policy discounts
If you buy renters and auto insurance or another different policy with the same  insurance carrier, you may qualify for a discount.

Claims- Free History
Renters who have no reported claims often receive discounts.

Security and Safety devices in the home
Insurance carriers will give you a discount if your home has a burglar alarm, smoke detectors, or other devices designed to lower the risk of theft or fire.