Rental insurance policies come in different tiers, but the overall price is quite low compared to other kinds of insurance. Independent Insurance Agents and Brokers of America estimates that the average cost of renters insurance policies is just $12 per month for up to $30,000 in personal property coverage. The average American citizen has about $20,000 in personal belongings.
To calculate your insurance needs, list all of your belongings and determine just how much it would cost to replace each item. This will help you understand whether you need a basic renters insurance coverage plan or are you better off going for something more expensive.
Low-cost policies: Perfect for students and other people who have not yet amassed much valuable property, inexpensive policies are great for those who won’t be crushed by having to pay replacement costs out of their own pockets. These policies come with high deductibles ($1,000 or more) while providing coverage limits lower than $20,000 - which means that perhaps you won’t be able to afford to replace all of your lost possessions at once.
Mid-level policies: These policies are best for younger renters with solid incomes. Deductibles range from $500 to $1,000 and coverage limits go up to $50,000. While this is a better option compared to low-cost policies, it still features large deductibles and limits that can easily be exceeded by the total value of property loss.
Family policies: This is where renter’s insurance becomes much more valuable as deductibles range from $300 to $500 and coverage limits surpass $50,000. They are best suited for couples who plan to rent for the long term but are unwilling to pay for the most expensive coverage on the market.
Top-tier policies: With deductibles of $0 to $300 and coverage limits well above $50,000, these policies offer the best renters insurance for apartments. They are perfect for minimizing costs in both total loss and itemized-loss situations.