Renters Insurance Is Expensive – Or Is It?

how expensive is renters insurance

Posted on September 3, 2014

Renters insurance is expensive

We saw a post on Reddit today that piqued our interest and thought it might be worth sharing some of the information. The original poster mentioned that he thought he might be paying too much for renters insurance. This can be a common thought when seeing the frequently quoted numbers of around $15 a month. The $24 a month he’s paying isn’t an absolutely outrageous price, but the value proposition of what he’s getting approaches zero. With $5,000 of personal property coverage, he might as well not have personal property coverage at all.

When shopping for renters insurance, it’s important to work with an agency or company that is able to keep your needs in mind, while still getting you the best renters insurance policy at an affordable price. Although our original poster is under the impression that renters insurance is expensive, he has no idea how expensive bad renters insurance can be when there’s a loss.

One Reddit user responded by saying, “Your deductible and coverage are very low to be paying that premium. You might have bad credit, or your residence might be in a high risk area”

We don’t disagree. In some cases, credit based insurance scores can significantly affect renters insurance premium. Affordable Chicago renters insurance can increase by 50% or more based on the insured’s credit score. In real terms, that only gets you to around $30 a month at most. That’s for $15,000 of personal property and $100,000 of liability. The poster’s policy might only be $50,000 of liability, based on what we know about some

brands of renters insurance and the limits they prefer to offer when someone doesn’t necessarily know better.

Another user commented, “It’s been my experience that most people should be able to get a bare-bones, lowest amount of coverage and liability for in the neighborhood of $100-$150/year”.

We don’t disagree. How much does renters insurance cost? Around $10-$15 a month. That puts you squarely at the $125-$150 range, with some slight variances for higher risk areas or significant credit damage. If you are under the impression that renters insurance is expensive, you’ve got the wrong renters insurance policy. It may be the wrong carrier, it may be the wrong coverage, but if you believe that renters insurance is expensive, something is not right. The original poster is in TN, and our experiences in that state bear out the above. Could you spend the $288 that the poster is spending on Nashville renters insurance. Absolutely. But that might buy you twice the base coverage in many cases, as opposed to the poster who might as well not even have coverage at those limits.

Renters insurance is expensive. Or is it? Contact Effective Coverage for a complete walk through of what factors are involved in pricing renters insurance. This includes, why it costs what it does and a free review of your current policy. If you think renters insurance is expensive, something is wrong and you need the renters insurance experts to review your policy for both price and coverage. With a little shopping around, the poster above could realistically get at least five times the amount of contents coverage that he has for the same price.


Category: Insurance

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