How Much Is Renters Insurance?

Find the average cost of renters insurance to protect yourself.

If you rent an apartment you might be asking the question, “How much is renters insurance?” Like other insurance, renters insurance premiums vary based on individual factors like where you live, what deductible you choose and what kind of coverage you want.

Many insurance companies offer online quotes, so you can also answer the question, “How much does renters insurance cost per month?” Keep reading to find out everything you need to know about renters insurance, including how to save money on it.

How Much Does Renters Insurance Cost?

Finding affordable renters insurance is easy, because unlike homeowners insurance, renters insurance does not cover the building itself. If something happens to the building, the landlord’s insurance would cover it. You can find renters insurance at most insurers, like Geico, State Farm and Allstate — and you can usually get a quote online.

Here’s an example of the typical price for renters insurance: In Boulder, Colo., a policy with a $40,000 content replacement limit, $100,000 liability limit and $500 deductible can cost anywhere between $125 and $300 per year. If that sounds high to you and you want cheap renters insurance, you can always lower the amount of coverage you choose or raise your deductible.

Related: How to Save for a House While Renting

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What Does Renters Insurance Cover?

Most renters policies cover three basic things:

  • Contents of the property
  • Liability from guests
  • Loss of use of the property

Each of these coverages has a limit specified in the policy — the more coverage, the higher the premium. You can add other coverages to your renters insurance — like a separate rider for jewelry, for instance — but that will increase your renters insurance cost.

Keep in mind that renters insurance usually doesn’t include damage from floods and earthquakes. Consider buying flood insurance or earthquake insurance if you live in an area where either occurs — your insurance company might offer it as an add-on.

Check Out: Best Renters Insurance Options

Pros of Renters Insurance

To get a better understanding of how renters insurance could be useful to you, check out the benefits of this type of coverage. Here are the advantages of renters insurance:

  • You’ll have peace of mind that your belongings are covered in case of a theft or an emergency.
  • You would have to spend a fortune restocking your house after your loss.
  • If a guest gets injured at your place you might be liable for his medical expenses — renters insurance will help offset the cost.

Cons of Renters Insurance

Although there aren’t many, renters insurance comes with some disadvantages. Before you commit, here are a couple disadvantages to renters insurance:

  • The cost can be high — although you can reduce coverage and increase deductibles to get more affordable renters insurance, it’s still an expense that some people can’t afford.
  • Deductibles can ding you: For example, if you have a $500 deductible it means your insurance won’t even kick in if your $300 iPhone gets stolen.

Should You Get Renters Insurance?

Yes, you should get renters insurance if you can afford it. Even a low-limit policy can be a big help in the event of trouble.

If your only belongings are wood planks over milk crates and a mattress on the floor, maybe renters insurance isn’t for you. But for anyone who has things they couldn’t imagine losing, renters insurance is a relatively inexpensive necessity.

Up Next: 15 Dumb Mistakes People Make When Buying Insurance

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About the Author

Brian Nelson

Brian Nelson is a Denver-based writer who specializes in writing about finance, technology, and other complex topics. As a former Certified Financial Planner, Brian spent years helping people understand their finances and learned that not all successful financial planning is about numbers. Brian has written for numerous financial planning firms, personal finance websites and financial publications including Dow Jones Publications.

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How Much Is Renters Insurance?
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