Renters Insurance Info

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Home Can I Afford Renter's Insurance? What will renters insurance cost?

What will renters insurance cost?

"I can't afford renters insurance." Many college students make this claim citing that their tuition payments and student loans as reasons that they cannot afford to get their own renters insurance policy for their apartment, but their parents' homeowners insurance and that of their landlords will not pay to replace any of their possessions which might be lost or damaged. Should their computer or television be stolen from their apartment, without renters insurance, replacing it will be solely up to the student. If they were covered, the insurance company would pay for part or all of the price to replace the items. The renters insurance cost should not be a barrier to seeking coverage.

The majority of those without renters insurance cite the price as their reasoning behind not seeking coverage, but the renters insurance cost is not high in reality. Most college students can get their own coverage for an apartment for between $15 - $30 per month. This amount is reasonable for most students, no matter how small the budget. It will save the cost of totally replacing damaged items in the event of a catastrophe.

When comparing renters insurance cost between policies, the student should avoid online calculators which do not take the location into account. Not only do the laws governing renters insurance vary by state, but the location of the apartment will greatly determine the amount of insurance paid. This is similar to the location a car is kept and driven determines automobile insurance rates. An apartment in a low crime area will have a lower rate than an apartment in a  high crime area. Theft is one of the many covered incidents by all renters insurance policies.

The most basic coverage is often recommended for those on a tight budget, and this can help to lower the renters insurance cost. More comprehensive coverage to ensure that the damage resulting from incidents not listed under basic coverage is more expensive, and most college students purchasing on a term by term basis - rather than annually – will find that it is more coverage than they need.

Cash value and replacement value are also decisions which affect the renters insurance cost. A cash value policy only repays the value of the lost item with depreciation factored in. For those with several older valuables, this might not be the best policy, even though it is the cheaper option. The replacement value pays for the items at the current price, no matter how old they are.

Discussing these options with an agent can ensure that the renters insurance cost will fit the student's budget and coverage needs.