How Much Does Renters Insurance Cost?

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As non-homeowners, many renters believe that they do not need to worry about insuring their personal property. They believe that in the event of a fire or burglary, their property will be covered by the landlord's insurance on the residence. However, this is very wrong. Renters need to purchase renters insurace to insure their belongings--the landlord's insurance only covers the building itself. Similar to car insurance, renters insurance cost varries according to what is being insured. Here are some things to consider to help you estimate renters insurance cost for you.

Consider the number of rooms that your rented residence has. Renters insurance cost is dependent upon the number of rooms instead of the square footage inside a residence. Insurance companies have found that using a room count helps them more accurately estimate the amount of personal property inside a home rather that using the square footage. The more rooms your home has, the higher your renters insurace cost will be.

Just like car insurance and health insurance, renters insurance also requires you to set a deductible. A deductible is the amount of money that you will pay in the even to a claim before the insurance money kicks in. A higher deductible means that the monthly premuim will decrease, while a lower deductible means that the monthly renters insurance cost will increase.

Find out if your prospective insurance company includes identity theft coverage in their renters insurance policies. Identity theft can be very costly, and it may be in your best interest to get identity theft coverage in the event that your home in broken into and your identity is stolen. Getting identity theft coverage as a part of your renters insurance will increase premuims and the more coverage you get, the greater price increase you will see.

You can also expect your renters insurance cost to be higher than normal if you live more than 10 miles from a fire station or the home does not have amble security alarms and locks in place. Additionally, renters insurance cost will be higher for those individuals who have filed a renters insurance claim before.

If the cost of renters insurance sounds too high for you, there is a way to get a discount. Many insurance companies offer discounts to their customers who have more than one insurance policy with them. If you already have car insurance, check out the renters insurance rates with that company and see if they offer discounts for mulitple policies.