How Much is Renters Insurance?

Renters Insurance Cost 

How much you will pay for renters insurance is calculated by the company you choose to purchase the policy through. Some common things that can affect how much you will pay include where you live, any previous claims that you may have had, and your coverage limits. If you live in an area where natural disasters such as hurricanes are frequent, you will probably pay more for renters insurance. On the other hand, if you live near a fire station, you could pay less for insuring your home. Recent claims within the past five years typically increase the average annual cost for your renters insurance. To request a quote for your home, fill out our form to contact a local office.

How to Save on Renters Insurance 

If you are looking for ways to save on your renters insurance policy, it’s good to compare coverages and prices from multiple companies. Talk to your local insurance agent to see what discounts may be available, such as a multi-policy discount. Also ask about discounts for security systems, such as burglar alarms.

What Does Renters Insurance Cover? 

You may have guessed that renters insurance typically covers personal property, such as your furniture and electronics. Did you know that some other coverages that can be offered are renters liability insurance and additional living expenses? Renters liability usually covers the policyholder from accidents on the rental property, such as a trip and fall. Additional living expenses coverage comes in handy if you need to relocate from the property due to a covered disaster. Typically, some covered disasters include fire, theft, or water damage from an internal source (such as a plumbing leak from a connected unit). It should be noted that floods are commonly excluded from a covered disaster in this situation, but you should carefully review your policy with an insurance agent to see what is covered.

Creating an Inventory for Renters Insurance 

The next step after getting renters insurance is creating a home inventory. You’ll want to have at least two copies of this- one to keep with you, and one to keep in a secure location that will not be damaged if your home is- like a safe deposit box. If you can, save receipts for expensive items, such as jewelry or electronics. Record serial numbers by either writing them down, taking a photo, or taking a video. Photos are also a good tool to prove the condition that an item was in. If you have collectible items or expensive jewelry, you may need a rider or floater to add to a standard policy. Some common items you may need a floater for are:

  • Antiques
  • Musical instruments
  • Jewelry
  • Sports equipment such as skis
  • Rare trading cards

Remember to update your home inventory as you purchase more items throughout the years. 

Actual Cash Value Vs. Replacement Cost 

When it comes to renters insurance, there are two different coverages for personal property: actual cash value coverage and replacement cost policy. Usually with an actual cash value policy, if you need to make a claim, you are financially compensated for the value of your items- in used condition. Typically, with an actual cash value policy, your premiums will be lower than with a replacement cost policy. On the other hand, replacement cost policies generally have higher premiums, but in the event of a claim, you can be financially compensated for the cost to replace your possessions with new ones. If you are still perplexed by the difference, consider the below scenarios.

Scenario 1: Actual Cash Value 

You purchase an actual cash value policy for your apartment. You own a large television, a laptop, a smart speaker, a bedroom furniture set you purchased several years ago, and some kitchen appliances. There is a fire at your apartment building and everything is either damaged or destroyed. You make a claim and receive financial compensation. You start to purchase replacement furniture, but find that your funds are depleting before you can replace everything. How can this be? While you were compensated for your lost property, the amount you received was for the items in used condition. When you went to replace the items with new, they cost more to replace.

Scenario 2: Replacement Cost Policy 

You purchase a replacement cost policy for your apartment. You own a dining set, a queen size bed, a sectional, a washer and dryer, some winter gear and skis, a laptop and a smartwatch. There is a fire in your building and your apartment is lost. You file and claim and receive financial compensation. Because you had a replacement cost policy, the amount is enough for you to replace everything you lost- including buying a new smartwatch.

How Do I Get a Quote for Renters Insurance? 

When it comes to selecting a policy for renters insurance, it’s a good idea to compare coverages. At Cross Insurance, we work with the nation’s leading carriers as well as regional insurers. With offices in Maine, New Hampshire, Massachusetts, Rhode Island, Connecticut, and New York, our agents are available for account management support. Contact us to request a renters insurance quote.


This article is for general informational purposes only and is not to be relied upon or used for any particular purpose. Cross Insurance shall not be held responsible in any way for, and specifically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained in this article. The information contained or referenced in this article is not intended to constitute and should not be considered legal, insurance, accounting or other professional advice, nor shall it serve as a substitute for the recipient obtaining such advice. The views expressed in this article are that of its author and do not necessarily represent the views of Cross Financial Corp. and its subsidiaries and affiliates (“Cross Insurance”) or Cross Insurance’s management or shareholders.

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