The Average Cost of Renters Insurance and How To Save

The average cost of renters insurance changes depending on the state you live. The condition of the building and the type of coverage you want will also affect your insurance rates. Your credit score cannot be ignored either when considering the cost of renters insurance.

Renters insurance is affordable insurance coverage?that anyone could purchase. Perhaps you assume that coverage costs $100 monthly, which may be above your means. Fortunately, renters or tenants insurance does not cost anywhere near that amount.

In fact, in the United States, tenants insurance costs an average of $190 annually or a little under $16 monthly. In general, renters insurance is affordable in terms of the type of policy you want.

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Many of the below factors influence how much an insurer will charge a policyholder.

The Location of Property

Properties located in areas which are considered to be prone to natural disasters have high premiums. Living in an area with high rates of crime will similarly attract higher premiums. Such properties located in these areas are considered to be high risk by insurers.

The location of the property is a common factor in determining the rates a tenant will pay for renters insurance. People who live in highly populated areas are also affected by this tenant?s insurance factor.

Size of Property

When you need to obtain a renters insurance for multi-dwelling property, size does matter. The amount you will be paying to your insurer will also depend on the number of units in your apartment. In general, if you live in a large building, the lower your premiums will be.

Security of the Building

Properties with security features such as twenty-four hour camera surveillance usually have lower premiums. Buildings with a single entrance and exit points with onsite security also have lower rates. Homes located in areas with high levels of crime benefit from taking security measures.


Your Credit Score

Checking out your credit score is a regular practice for insurance companies and, it takes place when your rates are being set. Good credit scores are considered to be signs of good financial status. Good credit scores could lead to low premiums (with auto insurance as well).

Let?s look at the states Oklahoma and Arizona as an example.

Renters Insurance Cost in Oklahoma

Your properties are covered by Oklahoma renter?s insurance policy. A lot of the things you own are broadly considered as personal possessions excluding your car and real estate. If you have jewelry, it is advisable to have coverage for them.

Earth movements such as earthquakes, mudslides and tornadoes are not covered by the standard HO4 renters insurance policy. However, most policies have an endorsement for this type of coverage. Based on your risk tolerance and desired coverage, check with your local insurance carrier?to ensure you have the appropriate coverage in Oklahoma.

Nationally, the average renter insurance cost is estimated to be $19 per month. In Oklahoma, the average renters insurance policy will cost you $234 a year or $19.50 monthly. Again, this is a matter of the factors discussed above.

The Average Cost of Renters Insurance in Arizona

The cost of renters insurance in Arizona can be influenced by many factors. Prices will also differ if you are applying for a new policy or just a renewal. The average price is $187 annually or $15 a month. In fact, most tenants will pay less.

In Arizona, you could face a penalty if your landlord requires you to apply for renters insurance and you do not. The penalty is a fee which you pay as additional rent. It is the same amount that tenants insurance would cost you. So, would you prefer to pay a fee or obtain the appropriate coverage and protect your belongings?

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Visit our office in Scottsdale AZ?to ensure you have the best renters insurance policy available to you.

The Average Cost of Renters Insurance in Texas

Did you know that the state of Texas is 3rd on the list of percentage of households that rent? Whether you just moved and are renting while you wait to buy, or you aren’t quite financially ready for a purchase, renters insurance is extremely important. Most people will pay around $15 per month for $10,000 worth of personal property coverage, so there is no reason not to purchase it! Come see us in our office in Dallas to learn more!

How To Save Money on Renters Insurance

Where you live can have an impact on the cost of renters insurance. There are many ways you can save on coverage. Here are two:

Combine Your Car Insurance with Renters policy

Insurers offer a discount?to clients who combine?their renter?s insurance with car insurance. These two policies are put under what is referred to as an umbrella policy. It makes it more efficient to pay since both payments are made to the same insurer.

Choosing Your Deductible

A deductible is an amount that is deducted from an insurer?s payout. For instance, let?s say a fire caused $2,500 in damages to your possessions and your deductible is $500. You would pay $500 (your deductible) and your insurer would pay you $2,000 for your loss.

Your premiums will reflect the amount you agreed to pay as deductibles. A high deductible means a lower premium. Similarly, lower deductibles mean higher premiums. Remember that your insurer will not pay for a covered loss that is lower than your deductible.

Final Thoughts

The average cost of insurance for tenants is surprisingly affordable to most people. It varies widely from insurer to insurer and state to state, but can be reduced depending on the deductibles and coverage you select.

If you still have questions regarding the level of coverage you need, feel free to contact Tatum Insurance and we will help ensure you are covered to your desired levels.