Renters Insurance Info

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Home Renter's Insurance for my State Why are there different renters insurance rates in my state?

Why are there different renters insurance rates in my state?

Renters account for 33.8% of occupied households in the 2000 US census. Of those renters, a 2007 survey by the Allstate company showed that only 40% had renters insurance. Since requirements vary by state, not all of these renters had insurance to cover their personal possessions. Many renters are unsure of why they might need their own insurance policy, and even more are confounded by the wide range of renters insurance rates advertised across the country. Every state has its own standards for renters insurance and homeowners insurance, and these differences account for much of the interstate discrepancies in the renters insurance rates. Once one knows what coverage he needs to look for in a policy, he can then examine those available to him in his state and narrow down his options based upon how well the rates will fit into his personal budget.

There are three main types of renters insurance upon which most states agree: homeowners broad coverage, homeowners comprehensive coverage, and customized plans that might merge aspects of the two with additional coverage as requested. Based upon the assessed value of the contents of his rental property, a renter will be able to choose among these three plans. Generally, since it is the most basic, the homeowners broad coverage is the cheapest. It is also the most popular of the policies, but it typically only covers incidents such as theft, fire, and renter's liability. The homeowners comprehensive coverage has higher renters insurance rates, but it will cover every type of disaster unless it is clearly denied in the policy. A customized plan will only cover what is dictated in the plan, and this is an agreement drawn up between the renter and the insurance agency. The renters insurance rates for this last one vary widely based upon the amount of coverage offered.

One thing that renters need to be aware of is that none of the standard policies cover flooding. In order to see the renters insurance rates for flood insurance, renters need to visit the Federal Emergency Management Agency (FEMA) website. This is the site where renters can decide if they need to have flood insurance to cover their possessions in the event of rising water. Many do not know that their landlord's homeowners policy will not cover anything should there be a flood, and even if he has it, it will only cover the dwelling against flood protection, and not the contents inside belonging to the renter. Renters will have two different types of flood insurance, and the renters insurance rates will depend upon the policy. Each one is dependent upon where the dwelling is located. Those in high risk flooding areas will pay more annually for their policy, but those not living in flood prone regions will see reduced rates. It is recommended no matter where one lives to purchase a flood insurance policy to cover rising water.

Renters insurance rates will vary depending upon what is covered, the standards set by the state, and the differences between the policies offered by the various insurance companies. Conducting research with several companies will ensure that the renter gets the best price for their renters insurance rates.