Nobody wants to think the worst could happen to them, but just like you plan for it by purchasing a car insurance policy, you’ll want to do the same thing when you move into your new apartment. What does renter’s insurance cover? Like a policy for your car, there can be many different options and plan types available, all of which will impact the average cost of renters insurance.
Whether you’re worried about expensive heirlooms or the latest tech gadget that you spent several months saving for, renters insurance can cover your personal property and reduce your financial liability for a variety of common situations.
What Is Renters Insurance?
Rental property insurance covers lost or damaged possessions as a result of fire, water damage, theft, vandalism, and more. In addition, it covers your personal liability if your actions cause damage to another resident’s belongings or if a visitor sustains injuries within your unit. Finally, renters insurance can help ease the financial burden associated with securing alternative living arrangements if your rented unit becomes uninhabitable.
What Are The Benefits Of Having Renters Insurance?
The amount of benefit you receive depends on the rental property insurance policy you choose. A renters insurance policy can potentially provide financial protection against:
- Theft: Jewelry, electronics, expensive collectibles, etc. are prime targets for theft. Even if your home has burglary deterrents and protection such as controlled access or a security system, you’ll still want to protect yourself against the financial ramifications of theft. Simply inviting one person into your home that you don’t know very well can put you at risk. Many policies offer optional coverage for the cost of replacing stolen items with brand-new equivalents of the same product.
- Property damage: Even if doesn’t seem like you own a lot, think of all the items you pulled together from your ultimate first apartment checklist, and then imagine how much it would cost to replace a significant portion of those items all at once. A leak that damages your electronics and furniture, a fire that causes smoke damage to your entire wardrobe, a storm that knocks out power causing all of the food in your refrigerator to go bad – it adds up quickly! Depending on the circumstances, your landlord may cover the costs to repair your apartment home, but they won’t pay to replace your belongings. Your rental property insurance policy can.
- Liability Coverage: Accidents happen. Unfortunately, if your actions lead to one, you can be held financially responsible for the damage to your rental property as well as the personal property of any affected neighbors. As much as we want to think we won’t get distracted while the tub is filling and let it overflow, or burn our dinner in the oven causing a fire, these things happen quite frequently. Bottom line, if the damage is your fault, the repair/replacement cost is on you. Renter’s insurance can help with this type of liability.
- Medical expenses for injured guests: Renters insurance covers any injury or harm that occurs to guests visiting your apartment. This coverage typically covers fees up to a certain amount if you are held responsible for bodily injury or property damage.
- Temporary living expenses: If at any time your apartment becomes uninhabitable due to any reason listed in your insurance policy coverage, your insurance policy can help pay for temporary housing and cover the costs of moving into and out of it.
What Is The Average Cost Of Renters Insurance?
The average monthly cost of renters insurance ranges between $15 and $30 across the U.S., which translates to an annual cost between $180 and $360. However, it’s important to note that where you reside determines the cost of your renters insurance policy. Regions that are prone to natural disasters might require a higher monthly premium than other areas less likely to be affected by floods, fire, earthquakes, etc.
The average annual premium for renters insurance in Virginia is $158, which turns out to be only $13.17 per month. Renters insurance premiums are only slightly higher in Maryland at $160 on average annually or $13.33 on a monthly basis.
Aside from the location of your rental, the cost of renters insurance is also dependent on your coverage needs and situation. If you own high-value items in your apartment and choose to include them in your coverage plan, your average monthly renters insurance bill might be higher than your neighbor’s insurance expenditures.
Should I Get Renters Insurance?
The short answer – Yes! While it might seem like an unnecessary expense today, the potential out-of-pocket costs you could incur without it are almost always much more expensive than the price of the policy. It is such a wise investment.
Additionally, can you really put a price on your peace of mind? For less than $15/month you can sleep well, knowing that you’re covered if the worst occurs.
What Determines My Renters Insurance Premium?
Before choosing to purchase renters insurance, make sure to get quotes from multiple insurance providers and inquire into coverage amounts, limitations, and premiums before choosing a rental insurance policy that’s right for you. By doing the proper research, you can find the best rate and coverage. Your location, claims history, personal belongings, and more play a role in determining your unique renters insurance premium.
Choose Southern Management For Peace Of Mind
Before you choose to purchase renters insurance, you need to be renting an apartment! If you’re interested in finding a well-maintained apartment community operated by a trustworthy property management company, look no further than Southern Management.
With 75 apartment communities and more than 25,000 apartment homes, we have the dream apartment for every resident. Pick your new apartment and improve your quality of life, then look into rental insurance to have peace of mind over your investment. Contact us to set up a tour of any of our apartment communities.