With rent prices continuing to rise in the United States, renters are finding themselves paying more for insurance that often does not cover all of their personal belongings. If you’re renting out your home and want to know what types of policies exist or which ones might be worth it, check out our infographic on renter’s insurance terminology.

Renters insurance is an important part of every renter’s life. However, it can be difficult to find the best price for renters insurance in your area. Luckily, “how much is renters insurance for $100 000” has a calculator that you can use to determine how much you should pay for your policy.

If you live here you're paying a lot for renters insurance

According to the Insurance Information Institute’s most current statistics, the average cost of renters insurance in the United States is about $179 per year. However, renters insurance costs vary greatly depending on where you reside, your claims history, and the coverage limits you choose, among other things.

Renters insurance plans are identical to homeowners insurance in terms of coverage. The purpose is to compensate you for any losses you may incur in the event of an emergency. Consider what would happen if a leak flooded your garment closet, ruining your whole wardrobe. Or suppose a thief came into your home while you were away and stole your laptop and other valuables. One degree of anguish would be these losses. It would be more worse if you didn’t have insurance that could assist you buy replacements!

If you’re renting a residence, regardless of whether it’s an apartment or a house, you should consider purchasing renters insurance. Even if you rent an apartment in a private house rather than an apartment complex, this is true. Your landlord may have homes insurance that covers them in the case of anything like a fire or a robbery. However, in the case of a loss, this usually does not protect your assets.

Similarly, should you rent or purchase a home?

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Average Homeowners Insurance Costs by State

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In the table below, we’ve included the average yearly renters insurance rates for each state. This information is based on the most recent numbers from the Insurance Information Institute, a nonprofit that gathers and disseminates data on the insurance business.

Halfpoint/istockphoto contributed this image.

Alabama

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  • $222.00 is the average yearly premium.
  • Cost rating for each state: 5

James Deitsch provided the image.

Alaska

alaska_VwzsVUk

  • $175.00 is the average yearly premium.
  • In terms of expense, the state ranks 22nd.

Chilkoot provided the image.

Arizona

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  • $175.00 is the average yearly premium.
  • In terms of expense, the state ranks 22nd.

courtesy of reisegraf

Arkansas

arkansas

  • $211.00 is the average yearly premium.
  • Cost rating for each state: 7

Rdlamkin provided the image.

California

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  • $178.00 is the average yearly premium.
  • In terms of expense, the state ranks 21st.

mlauffen contributed this image.

Colorado

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  • $164.00 is the average yearly premium.
  • In terms of expense, the state ranks 29th.

Jacob Boomsma / istockphoto contributed to this image.

Connecticut

Connecticut

  • $188.00 is the average yearly premium.
  • In terms of expense, the state ranks 12th.

Photograph by traveler1116.

D.C.

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  • $157.00 is the average yearly premium.
  • Cost rating for each state: 35

dkfielding contributed this image.

Delaware

delaware

  • $157.00 is the average yearly premium.
  • Cost rating for each state: 35

mdgmorris provided the image.

Florida

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  • $185.00 is the average yearly premium.
  • In terms of expense, the state ranks 14th.

Elisa.rolle contributed this image.

Georgia

georgia

  • $214.00 is the average yearly premium.
  • In terms of expense, the state ranks 6th.

SeanPavonePhoto provided the image.

Hawaii

hawaii

  • $181.00 is the average yearly premium.
  • In terms of expense, the state ranks 19th.

Art Wager contributed to this image.

Idaho

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  • Annual premium average: $152.00
  • Cost rating for each state: 40

knowlesgallery provided the image.

Illinois

illinois

  • $166.00 is the average yearly premium.
  • In terms of expense, the state ranks 27th.

Image courtesy of ibsky.

Indiana

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  • $172.00 is the average yearly premium.
  • In terms of expense, the state ranks 24th.

f11photo contributed this image.

Iowa

iowa

  • $144.00 is the average yearly premium.
  • In terms of expense, the state ranks 47th.

JoeChristensen contributed this image.

Kansas

kansas

  • $172.00 is the average yearly premium.
  • In terms of expense, the state ranks 24th.

Michael Pham contributed to this image.

Kentucky

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  • $166.00 is the average yearly premium.
  • In terms of expense, the state ranks 27th.

Thomas Kelley provided the image.

Louisiana

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  • $234.00 is the average yearly premium.
  • In terms of expense, the state ranks third.

DenisTangneyJr. contributed this image.

Maine

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  • Annual premium average: $149.00
  • Cost rating for each state: 42

DepositPhotos.com provided the image.

Maryland

maryland

  • $161.00 is the average yearly premium.
  • In terms of expense, the state ranks third.0

James Lane contributed this image.

Massachusetts

Massachusetts

  • $191.00 is the average yearly premium.
  • In terms of expense, the state ranks 9th.

Rolf 52 contributed this image.

Michigan

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  • $185.00 is the average yearly premium.
  • In terms of expense, the state ranks 14th.

haveseen is the source of this image.

Minnesota

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  • $140.00 is the average yearly premium.
  • In terms of expense, the state ranks 49th.

JoeChristensen contributed this image.

Mississippi

Mississippi

  • Annual premium average: $252.00
  • In terms of expense, the following states are ranked: 1

stevegeer contributed this image.

Missouri

missouri

  • $179.00 is the average yearly premium.
  • In terms of expense, the state ranks 20th.

eyecrave contributed this image.

Montana

montana

  • $147.00 is the average yearly premium.
  • In terms of expense, the state ranks 45th.

YinYang provided the image.

Nebraska

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  • Annual premium average: $149.00
  • Cost rating for each state: 42

Marekuliasz contributed this image.

Nevada

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  • $182.00 is the average yearly premium.
  • In terms of expense, the following states are ranked: 18

AlizadaStudios provided the image.

New Hampshire is a state in the United States.

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  • $148.00 is the average yearly premium.
  • In terms of expense, the state ranks 44th.

DenisTangneyJr. contributed this image.

New Jersey (NJ)

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  • $160.00 is the average yearly premium.
  • In terms of expense, the state ranks third.2

courtesy of aimintang

New Mexico (NM)

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  • $186.00 is the average yearly premium.
  • In terms of expense, the following states are ranked: 13

Davel5957 contributed this image.

New York

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  • $189.00 is the average yearly premium.
  • In terms of expense, the following states are ranked: 10

Image courtesy of Boogich.

North Carolina is a state in the United States.

Charlotte_North_Carolina

  • $158.00 is the average yearly premium.
  • In terms of expense, the state ranks third.4

Darwin Brandis is credited with this image.

North Dakota is a state in the United States.

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  • $126.00 is the average yearly premium.
  • Cost rating for each state: 51

sequential5 is the source of this image.

Ohio

ohio

  • $169.00 is the average yearly premium.
  • In terms of expense, the state ranks 26th.

dypics provided the image.

Oklahoma

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  • $236.00 is the average yearly premium.
  • In terms of expense, the state ranks second.

DepositPhotos.com provided the image.

Oregon

Astoria_Oregon_vp2uUhW

  • $161.00 is the average yearly premium.
  • In terms of expense, the state ranks third.0

HaizhanZheng contributed this image.

Pennsylvania

Gettysburg_Pennsylvania

  • $157.00 is the average yearly premium.
  • Cost rating for each state: 35

AppalachianViews provided this image.

RIVER ISLAND

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  • $185.00 is the average yearly premium.
  • In terms of expense, the state ranks 14th.

danlogan provided the image.

South Carolina is a state in the United States.

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  • $184.00 is the average yearly premium.
  • In terms of expense, the following states are ranked: 17

SeanPavonePhoto provided the image.

South Dakota is a state in the United States.

south_dakota

  • $127.00 is the average yearly premium.
  • Cost rating for each state: 50

RiverNorthPhotography provided this image.

Tennessee

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  • $195.00 is the average yearly premium.
  • Cost rating for each state: 8

Swarmcatcher provided the image.

Texas

El_Paso_Texas

  • $225.00 is the average yearly premium.
  • In terms of expense, the state ranks fourth.

DenisTangneyJr. contributed this image.

Utah

UTAH_Salt_Lake_City

  • Annual premium average: $155.00
  • In terms of expense, the state ranks third.8

AndreyKrav contributed this image.

Vermont

vermont

  • Annual premium average: $153.00
  • In terms of expense, the state ranks third.9

DonLand provided the image.

Virginia

virginia_beach

  • Annual premium average: $152.00
  • Cost rating for each state: 40

DenisTangneyJr. contributed this image.

Washington

Washington_NP9X7gp

  • $160.00 is the average yearly premium.
  • In terms of expense, the state ranks third.2

4nadia provided the image.

West Virginia is a state in the United States.

Depositphotos_7549387_s-2019

  • $189.00 is the average yearly premium.
  • In terms of expense, the following states are ranked: 10

DepositPhotos.com provided the image.

Wisconsin

Milwaukee_Wisconsin

  • $143.00 is the average yearly premium.
  • In terms of expense, the state ranks fourth.8

FierceAbin provided the image.

Wyoming

wyoming_39WbQJr

  • $146.00 is the average yearly premium.
  • In terms of expense, the state ranks fourth.6

AnujSahaiPhotography provided this image.

Renters Insurance in the Top 5 Most Expensive States

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Mississippi has the most costly renters insurance in the US, according to the Insurance Information Institute. Renter’s insurance costs an average of $252 per year in the Magnolia State. Let’s take a look at the first five.

Because of their closeness to the shore, Mississippi and Alabama are among the most costly states for renters insurance. Being so close to the Gulf Coast puts inhabitants at risk since storms typically make landfall here first. Inland, the danger of loss is larger.

Oklahoma, Texas, and Louisiana are all located in “Tornado Alley,” a region of the United States bounded to the north by the Dakotas and to the south by Texas that has a history of devastating tornadoes. Due to each location’s increased vulnerability to wind and storm damage, these variables have resulted in higher renters insurance rates.

 

 

photo credit: sofi

The Top 5 Low-Cost States for Renters Insurance

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North Dakota is a state in the United States. is the least expensive state for renters insurance in the United States, according to data gathered by the Insurance Information Institute. North Dakota is a state in the United States.ns pay an average of $126 per year for renters insurance coverage. In general, renters policies are lower in areas that aren’t subject to extreme weather (like hurricanes and tornadoes) and that have low crime rates.

 

 

photo credit: sofi

What Determines the Price of Renters Insurance?

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A number of variables may impact the cost of your renters insurance, the most important of which are:

Understanding these factors may go a long way toward lowering your rates and assisting you in selecting the best renters insurance coverage for your requirements.

What Is Renters Insurance and Do I Require It?

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Limits of Coverage

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This is one of the most important aspects affecting the expenses that you can influence. On your renter’s insurance coverage, most insurance providers will let you choose between larger and lesser limits.

The maximum sums an insurer is prepared to pay in the case of a covered claim are known as coverage limits. There are many types of coverage (more on that below), and the coverage limits typically vary from $10,000 in personal property coverage (things in your home that might be damaged or lost) to $500,000 in liability coverage (this be tapped if someone got injured at your house). In general, the more insurance coverage you need, the higher your expenses will be.

millann is the photographer.

2. Tax Deduction

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Another big component of your renter’s insurance prices that you may control is the deductible. The deductible is the amount you agree to pay out of pocket before your renters insurance kicks in if you submit a claim.

When it comes to losses suffered in a covered claim, your deductible shifts risk from the insurer to you. As a result, if you choose a greater deductible, insurers are ready to offer you a cheaper premium since the amount they have to pay out is reduced. As you may expect, your premiums will be higher if you choose a low deductible to spend as little out of pocket as possible.

Your optional deductible will normally vary from Depending on your insurance provider, your optional deductible will usually range anywhere from $0 to $2,000. In some instances, insurance providers will allow you to pick your deductible as a percentage of your total insurance limit, for example, if your policy limit is $10,000 and your deductible allotment is 10%, your deductible will effectively be $1,000 for each claim filed. to $2,000, depending on your insurance company. In certain cases, insurance companies may let you choose your deductible as a percentage of your overall insurance coverage. For example, if your policy limit is $10,000 and your deductible is 10%, your deductible will be $1,000 for any claim submitted.

Choosing a Renters Insurance Deductible is highly recommended.

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3. Previous Claims

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Insurance firms employ a “CLUE” report (Comprehensive Loss Underwriting Exchange) to monitor your past when it comes to submitting insurance claims, similar to your FICO score. Regardless of whether you relocate or change insurers, this report provides information on all insurance claims submitted in the last 5 to 7 years.

Insurance companies may see repeated claims with large payments as a red flag and raise your rates. Be aware that claims made under other insurance policies, such as homeowners insurance, might have an influence on your renters insurance cost.

Image credit: istockphoto/gpointstudio

4. Geographical location

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You know how in real estate the three most critical factors are location, location, location? Well, location isn’t everything when it comes to renters insurance, but it is a big factor in how much you’ll spend.

Are you renting a cottage in the woods in a remote region with minimal crime? Or are you relocating to a building in the heart of a large metropolis where robberies are common?

Or do you have your heart set on renting the cutest beach cottage only feet from the water? Your premium will be affected by the location of your rental. Insurance actuaries use sophisticated formulae to calculate your premium behind the scenes; they take into consideration a variety of variables, including the danger of natural catastrophes, crime, and fire, among others.

If you reside in a region that is particularly prone to crime or natural catastrophes, expect to pay a higher premium, depending on how hazardous the insurer considers your location to be.

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5. Pets

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While we all like our pets, it’s very usual for pet owners to face higher insurance costs if they live with one. Regardless matter how adorable your cat is, insurers see pets as a liability risk, especially when it comes to bites, scratches, and property damage.

If your pet attacks a visitor or nips someone while you’re strolling it through the lobby of your apartment building, your renters insurance may cover it.

In rare cases, insurers may refuse to cover particular sorts of pets, such as certain dog breeds or exotic animals considered “greater risk.” Check with your insurance company to see whether your pet is protected under your renters policy.

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6. Additional Protection

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Your typical rental insurance policy will most likely contain standard coverage for personal property, liability, and loss of use (expenses spent if you are unable to live in your customary residence). Furthermore, many insurers provide a variety of supplementary coverages, riders, and endorsements that you may add to your renter’s insurance policy to customize it to your specific requirements.

Adding coverage comes at a cost, but since renters insurance is quite inexpensive, it generally only adds a few dollars each month.

Some of these extra coverages may be useful to explore depending on your own assets. The following are some of the most popular add-ons/endorsements/riders supplied by insurers:

  • Scheduled personal property: This increases the coverage limit for a particular identified item or things that would otherwise fall outside of your ordinary renters insurance policy limitations.
  • Replacement cost: An insurance policy will usually compensate you for the item’s real monetary worth. If your 5-year-old laptop is stolen or destroyed, you will be compensated for its current worth. Depreciation is removed from the computation of your property’s worth with replacement cost coverage, resulting in a bigger reimbursement in a covered claim.
  • Damages to any business equipment you have at home that isn’t covered by a typical renters insurance are covered under this policy.
  • Pet damage: This may let you to add coverage for property damage and liabilities caused by pets that your normal renters insurance does not cover. Specific breeds and kinds of pets may be excluded.
  • Earthquake coverage: This protects your property from damage caused by an earthquake, which is usually not covered by renter’s insurance.
  • Identity theft: This covers the expenses of recovering your identity and addressing any fraudulent conduct if you’re ever a victim of identity theft, as well as fees for professional help in restoring your identity and resolving any fraudulent activity.

Milan Jovic contributed this image.

What Does Renters Insurance Cover?

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The following typical coverages are included in the majority of renters insurance policies:

  • Personal property: This covers any loss or damage to your belongings that occurs as a result of a covered incident, such as a fire or theft.
  • Liability: This covers any expenses associated with property damage or physical harm that you are deemed responsible for in the case of a covered claim.
  • Loss of use: Also known as “extra living expenditures,” this covers the price of interim accommodation if your rental becomes unlivable as a result of a covered loss.
  • Medical payments to others: This covers the expenses of medical treatment for visitors who are wounded on your property. Unlike liability insurance, you do not have to be legally responsible for any injuries.
  • Most insurance companies will let you change the coverage limits to meet your specific requirements. Keep in mind that this will almost certainly affect your renters insurance prices; greater coverage means higher premiums.

What Does Renters Insurance Protect You From?

xavierarnau contributed this image.

Is Renters Insurance Required?

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You are not legally compelled to get renters insurance. Most people should have renters insurance since their landlord’s homes insurance will not cover any losses or damage to their personal goods, nor will it usually cover any responsibility for bodily injury or property damage that happens while the property is leased.

As part of your lease agreement, certain rental properties may require you to acquire and maintain appropriate renters insurance. Make sure you understand what your lease needs by speaking with your landlord.

Landlords: Why Do They Require Renters Insurance?

Vladimir Vladimirov contributed to this image.

Is It Possible to Save Money on Renters Insurance?

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Bundling your insurance plans under one insurer, raising your deductible, and being safe and claim-free are all strategies to reduce your renters insurance expenses. Let’s take a deeper look:

  • Bundle your insurance plans: Most insurance providers will give you a discount if you buy numerous policies from them. Renters insurance purchased in conjunction with other policies, such as life or car insurance, may result in a cumulative discount across all of your policies.
  • Increase your deductible: Increasing your deductible increases your part of the expenses in the case of a covered claim and, as a result, lowers your premiums.
  • Pay your complete premium in one lump sum rather than monthly or quarterly payments: Some insurance companies give a discount if you pay your entire premium in one lump sum rather than monthly or quarterly installments. Check with your provider to see if they provide discounts for lump-sum payments.

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The Conclusion

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When compared to other forms of coverage such as homeowners, vehicle, or health insurance, renters insurance is comparatively affordable. It may, however, be quite useful in the case of an emergency on your rental property.

When renting a property, it’s a smart idea to obtain renters insurance. Keep in mind that your landlord’s homes insurance coverage normally only protects their interests and will not refund your expenses if anything goes wrong. Imagine losing everything you own, or even just your clothing, in a fire. Or having a thief break into your home and take your valuables.

Renters insurance may ease the agony by covering the cost of replacing what you’ve lost. That type of assurance is definitely worth the generally low premiums charged by these products.

More information:

MediaFeed.org syndicated this story, which first appeared on SoFi.com.

SoFi offers customers the opportunity to reach the following Insurance Agents: Home & Renters: Lemonade Insurance Agency (LIA) is acting as the agent of Lemonade Insurance Company in selling this insurance policy, in which it receives compensation based on the premiums for the insurance policies it sells. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances. External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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AlertMe

The “why would someone want to have renters insurance if their building owner has insurance?” is a question that many people ask. In this article, I will explain why having renters insurance is necessary.

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  • the coverage under renters insurance will cover the costs of the following items except:
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