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Are you looking to take out renter's insurance? Then keep reading because we're looking at the average renters insurance cost and what you should be paying.

Between 2017 to 2019, there were 368,500 residential building fires in the U.S., causing $8.1 billion in property loss. Residential buildings include apartments, manufactured housing, condominiums, row houses, dormitories, townhouses, and more.

Seventy-seven percent of all fire deaths and 75% of fire injuries occur in residential buildings. If you rent housing, there is always a risk of fire, theft, or other loss.

It is easy to overlook the need for insurance, but if you lose everything you own, can you recover? Renter's insurance cost is minimal compared to replacing your possessions.

The financial protection you receive in exchange for paying the average monthly cost of renters insurance is indisputable. Keep reading to learn more.

What Does Renters Insurance Do?

When you rent, the landlord likely has insurance to cover the building structure but not the contents. Renters insurance provides coverage if a disaster or theft results in the loss of your personal belongings. There are three primary coverage areas:

  • Personal property: clothing, household goods, furniture
  • Personal liability: if someone suffers an injury while visiting
  • Loss of use: living expense coverage if your residence suffers damage making it uninhabitable

Premium costs depend on the coverage you purchase. This includes whether you buy actual cash value or replacement cost.

The actual cash value pays you the item's original value, less depreciation. Replacement coverage pays the cost of replacing a damaged or lost item.

Renters Insurance Cost

According to the Insurance Information Institute, in 2019, the average cost of renters insurance in Ohio was $163 per year. That's less than $14 monthly for financial protection if disaster strikes.

Your actual cost will vary depending on your age, the coverage you purchase, and the area where you live. Large metropolitan areas like Cincinnati and Columbus will have higher renters insurance rates than less populated areas like Mansfield and Marietta.

When determining your renter's insurance cost, several factors influence your premium. Your cost will be higher if you live in an area prone to natural disasters like hurricanes, wildfires, or tornadoes. Neighborhood crime rate and proximity to a fire hydrant and fire department impact rates.

Also, consider whether riders are necessary. Standard insurance does not cover expensive jewelry, antiques, collectibles, musical instruments, etc.

Insurance companies will consider you a higher risk if you have made claims in the past three to five years, even if it was a different company. Similar to FICO, there is a credit-based insurance score insurance companies use. Because those with poor credit are more likely to file claims, they pay higher premiums.

If you own a dog breed that is considered more aggressive, you may pay a higher premium for your liability coverage. The size of the space you are renting will also impact your coverage cost. Renting a three-bedroom house will require more insurance coverage than a studio apartment.

Another consideration is your deductible. A higher deductible lowers your premium, but it also means you have to pay a higher amount out-of-pocket in the event of a loss. A decision on deductible should be made considering your average cash-on-hand.

Lowering Renters Insurance Cost

Speak to your insurance agent about options for lowering your renter's insurance. Many companies offer discounts for bundling. This means you purchase renters insurance and another type of insurance, such as auto, from the same company.

The company may offer a discount if you haven't filed any claims in the past three to five years. Non-smokers frequently receive a cost reduction on residential insurance.

You may also receive lower rates if your residence has smoke detectors, sprinkler systems, burglar alarms, or other devices that reduce risk. An older building may have lower rent, but it is less likely to have safety features and more likely to have older pipes and electrical wiring. This can increase your insurance costs.

You may also receive a discount for paperless billing or using autopay. Make sure you have enough money in your bank account to cover the premium being taken each month.

Get a Quote Here

Stanley Insurance Group can quote your renter's insurance cost. We are an independent insurance agency. We work with many carriers to get you the most coverage for your money.

Call us today at 614-876-1224 or request a quote online.

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