Insurance & Real Estate Law, Property Management

What Comprises the Average Cost of Renters Insurance?

Are you currently renting your residence? Are you already covered by a renters insurance policy?

If you are not and yet are considering one, then you may be wondering how much a renters insurance policy may cost you.

Provided here are some information that can answer some queries which you may be asking regarding renters insurance so that you can better understand it before you finally decide to obtain a policy for yourself.

While the average cost of renters insurance may be on top of mind as you consider buying a policy, it may be better to first discuss what exactly renters insurance is, what it covers and why you may find it useful and important to you.

average cost of renters insurance

Renters Insurance, in a Nutshell

The definition. Renters insurance is a form of property insurance which covers the policy holder’s possessions and liability within the residential property being rented.

This residential property may be a house, an apartment, a condo unit, a loft or even a dormitory, among other types of residences being rented out or sublet.

A renter insurance policy repays the renter in case of losses or damages of belongings. It is designed to protect you and your properties within your rented residence.

The coverage. Basically, renter insurance covers the contents and materials which you own in your rented dwelling. This form of property insurance covers losses and damages incurred due to fire, riots or neighborhood commotion, vandalism, and theft, among other untoward incidents that can result in these losses or damages, even those caused by an aircraft or a vehicle.

Although it will largely depend on the coverage of the renters insurance policy, for the most part, renters insurance will also cover overflow or leakage of water and steam from HVAC appliances and plumbing, among other sources.

The importance. Aside from getting legal protection from losses or damages to personal properties within your rented residential unit, renters insurance also provides liability coverage.

Liability coverage will include legal expenses in the event that someone, a house guest perhaps, is injured while in your house or if you accidentally injure someone inside your rented dwelling.

In addition, this type of insurance even covers your possessions while you are traveling.

Finally, it may cover other living expenses. For instance, if your rented house becomes incapable of being inhabited due to the covered hazards as mentioned in the previous section, your insurance policy can cover for your temporary housing and even sustenance, among other additional living expenses.

Now the next section will discuss the average cost of renters insurance and why actual costs will greatly vary from one policy to another.

However, another great source for more information will be to consult with a San Antonio property management company, like Pyramis Company, that has extensive experience with residential property management as well as with the forms of property insurance that are involved in the business.

What Influences the Average Cost of Renters Insurance?

While actual costs of renters insurance vary from one policy to another, you can still get a general idea of what comprises the average cost of renters insurance.

There are some considerations to factor in to determine what comprises the average cost of renters insurance. Read on and learn what these considerations are.

The Location

The average cost of renters insurance is driven and influenced by the market accordingly depending on the location of the rented dwelling.

For instance, if renters insurance tends to be not very popular amongst renters in a certain area, then the price of a specific policy will also lean on being lower. Insurance companies will then have to limit the policies which they will write so that they can maintain the required reserve levels for payment claims.

The Duration of Residency

This is another one of the considerations that affect and comprises the average cost of renters insurance in any given location.

Will the tenant inhabit the rented dwelling on the long term, say, eight months or over a year? Will the tenant stay in the rented home for only a brief period of time?

factors affecting the cost of your renters insurance

The Environmental Factors

The general climate and environmental conditions of the location of the rented residence will also have to be factored in computing for the policy premium to be paid.

Is the location too prone to storms and other natural calamities? How relatively safe is the neighborhood?

Ultimately, the costs of your renters insurance policy, should you choose to get one for your protection as a tenant and for the security of your possessions, will depend on the type of coverage which you will go for and which you may be willing to expend for.

So what you should do is assess and evaluate your liability and make an inventory of your valuable belongings. In this way, you will know how much coverage you will need or if you will need extra coverage.