How much is renters insurance?

Getting renters insurance can help protect your wallet from a range of possible incidents—everything from small mishaps, like dropping and shattering your phone screen, to full-scale nightmares, like fires and windstorms.

But how much is renters insurance?

We’ve got good news. All of that protection is cheaper than you’d think.

Renters insurance isn’t one-size-fits-all. The monthly cost of renters insurance can range anywhere from $5 per month to $35 per month, depending on a number of factors. Let’s take a closer look.

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How much is renters insurance?

The price of renters insurance (and any insurance) is called a “premium.” That’s the amount of money you send your insurance company monthly—or yearly—in exchange for protection. A number of things can impact that figure, including:

Payment schedule.

Most insurance companies allow you to pay your bill either in monthly installments, or once a year. In general, you’ll save a little money if you choose the annual lump sum.

Geography.

The average cost of renters insurance is different in every state. That’s because insurance is partly priced based on the likelihood that your insurance company will need to make a payout. If you live in a place that’s particularly prone to crime or catastrophic weather, like New York, it’s more likely that you’ll need to file an insurance claim than if you live in a low-crime state that doesn’t tend to have major storms. Your premium will be a bit higher to account for that additional risk.

And it’s not just your state that matters. Insurance companies also take other things into account, like whether you live in an area with ample hydrants and a salaried fire department, or are far away from the nearest fire station and protected by an all-volunteer force. Those factors could have a significant impact on the amount of damage you sustain if a fire does break out, and therefore on the risk your insurance company assumes by insuring your things. (Learn more about how insurance covers fire damage).

Sound complicated? It is. A rural area may have a low crime rate, but be ill-equipped to respond quickly in the event of a fire, and your insurance company will have to take all of that into account. To help set prices, insurance companies rely partly on historical industry data for a given area, analyzing past insurance payouts in that location.

Coverage.

How much is renters insurance when it comes to coverage? The more protection you want, the more you’ll pay. For example, if you purchase $20,000 worth of contents coverage—the coverage that applies specifically to your belongings, or the “contents” of your home—your premium will be a bit higher than if you opt for only $10,000 of coverage.

Still, if the total value of your belongings is actually $20,000, you’re much better off insuring yourself for the full amount. If you’re only covered for $10,000 and a fire wipes out your things, your insurance company won’t pay out more than $10,000 total for repairs and replacements. That means you’ll be on the hook for the other $10,000. So while you might save a little money up front, you’re putting a lot of money at risk.

On the flip side, it’s not worth it to buy more protection than you need. If you purchase $20,000 of contents coverage, but the value of your things only totals $10,000, you’ll be paying for protection you can’t use. In that scenario, the most your insurance company will ever be able to pay out for damage to your belongings is $10,000. Learn more about how much renters insurance coverage you need

Note that when you file a claim, you’ll need to provide some proof of what you actually owned and how much it was worth. One of the best ways to gather evidence of what you own is to create a home inventory, a catalog of your belongings, their value, and other key information.

Deductible.

Your deductible is the amount of money you’ll need to pay out of pocket before your insurance kicks in. Say your insurance plan carries a $500 deductible, and a burst pipe causes $1,500 worth of damage to your stuff. You’ll pay the first $500 out of pocket, while your insurance company will chip in the other $1,000. Generally, insurance plans with higher deductibles have lower premiums.

Add-ons.

Sometimes, the coverage offered by a basic renters insurance plan just isn’t enough. At Jetty, we offer additional coverages, called Power-Ups, that you can add to you base plan if you need a little more protection.

Basic renters insurance only covers items of average value, so if you own something particularly expensive, like an engagement ring, you can make sure it’s fully covered with a Personal Valuables Power-Up. If you tend to spill drinks on your laptop or misplace your phone, you might opt to purchase a Portable Electronics Power-Up, which will protect your devices from water damage, shattered screens, and loss. Power-Ups will increase your premium slightly, but the extra coverage they provide is more than worth it.

Your insurance provider’s overhead costs. Jetty saves money by keeping everything online. We don’t have to pay for brick and mortar locations, and we pass that savings on to you in the form of affordable renters insurance. Other providers tend to have higher operational costs, and their premiums are higher as a result.

What does renters insurance cover for the monthly cost?

So you know how much renters insurance costs… but what does renters insurance cover? Most renters insurance includes four basic types of coverage: contents (your things), loss of use (if your home becomes uninhabitable due to a covered incident), liability, and some medical payments to others.

With Jetty, you have the option to purchase additional coverages, called Power-Ups. These bonus coverages (often called “endorsements” by other companies) include the Portable Electronics Power-Up, which protects your devices from loss, water damage, and shattered screens, and the Personal Valuables Power-Up, which covers big-ticket items, like expensive sporting equipment or engagement rings. We also offer a Bedbug Power-Up and Airbnb Host Theft Protection.

Learn more about Jetty Renters Insurance.