How Much Is Renters Insurance?

Posted on June 14, 2014

Today’s renters insurance question comes from Bethany in Plainsboro, New Jersey .

How much is renters insurance? I know I need the coverage, but I’m just starting out and I don’t have a whole lot of money. I need to know how much it should be before I start shopping…

How much is renters insurance?

How much is renters insurance? How much does it cost? The national average is $15.00 a month. If you’re in Texas and subject to hurricanes, it might go as high as $18.00 a month. In New Jersey, it’s actually less

Here at Effective Coverage, we often get asked how much is renters insurance because people know we’re insurance experts. There are two answers to that question – the national average, and what you pay. You might be shocked to find out that neither has any real bearing on the other.

How much is renters insurance?

Usually when someone asks us how much is renters insurance, we give him a quote. Once in a great while, we’ll run into someone who absolutely refuses to give us any information until he knows how much it will be. It’s difficult to even give a range without any information at all.

When you ask how much is renters insurance, you have to understand that insurance is priced based on complex mathematical formulas to determine risk and appropriate pricing. We don’t pull

numbers from a hat, and there is no magical insurance unicorn that rides in with a magical price on its back. You, your situation, your address, previous claims in the same area, and many other factors can affect the cost of renters insurance.

How much is renters insurance?

The national average is $15.58 a month. While it can vary (Houston renters insurance. with the coastal risk, might be priced differently than Colorado renters insurance ), the majority 80% or so of people pay around that price.

How much is renters insurance also varies depending on the coverage. If you need $50,000 of personal property coverage, obviously your policy will be priced differently than someone with only $15,000 of coverage. The risk between the two policies may be the same, but the exposure on the larger policy is much greater. Renters insurance policies are priced accordingly.

Once in a while, we see outliers. In one state, we have seen renters insurance policies for $125 a year. That instance has a great deal to do with the North Carolina renters insurance market and how it’s regulated.

Some places, for example New Jersey renters insurance. add a dollar or two of taxes or fees to each policy. That also affects how much is renters insurance. All in all, it’s dependent on your state, you, how much coverage you need, and other factors. But having renters insurance is always drastically less expensive than not having it.


Category: Insurance

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