Renters insurance. Not everybody finds it necessary until it is too late because there have been past years where about 60% of renters do not have renters insurance.
But, what is the cost for the 40% that do have coverage in the event of something going wrong? And what coverage are your tenants getting for your renters insurance cost?
This is your guide on renters insurance coverage and the costs.
Renters Insurance Cost
With only 40% of people having this insurance, some might think that it is a big bill to pay.
The truth is, it will probably be one of your cheaper annual bills. That is because the average renters insurance premium is about $168 per year.
Of course, this can vary by what state you live in and even what city you live in. For example, Louisiana is way above the national average, having a state average of $262 per year. In contrast, Iowa is one of the cheapest states in the country, averaging around $110 per year.
If they decide to get renters insurance, then what state they are renting from and even what city they are staying in will play a significant factor in how much they will pay.
When it comes to renters insurance, there are typically four main things covered on it. The first is if the apartment cannot be used anymore or at least for a temporary period. Renters insurance would pay relocation costs if there was mold in the apartment or a natural disaster damaged it.
Then, there is the possibility of someone getting hurt in an apartment. If someone falls, breaks their back, and needs medical attention, this situation would be covered under renters liability insurance.
Plus, this can be useful if you have certain items stolen, such as a laptop, television, gaming system, cell phone, etc. Renters insurance can help reimburse the cost of those items up to a certain amount.
Credit and Claims
These are two other ways that the cost of renters insurance can be affected because if someone has had past claims before, it is likely that their premiums would increase.
Insurance companies also screen tenants by the likelihood of needing to file a claim. One example of this would be to gain access to their credit report.
They cannot get that directly, but there are enough ways around it to get a good idea, and if it gets discovered that a tenant has poor credit, they could be charged a higher premium because they will be viewed as more likely to file a claim.
Finally, a deductible can help save money on a premium because it can mean that the renter is willing to pay a higher amount out of their own pocket if something happens. With most insurance companies, renters have the option to opt into this to try and save money on premiums.
Learn More About Renters Insurance Cost
If you are a new landlord, you may not have been aware of all of these factors for the renters insurance cost. But, with this quick info, you can begin to get a better idea of what your renters may or may not do.
Do you need more advice and assistance? Contact us with your questions today.