How often should you shop around for renters insurance? (2024)

We’ve said it before and we’ll say it 100 times: Renters insurance is one of the most important things to have while you’re renting an apartment, condo, or home. Many renters often think that the items they own — be it a sofa, computer, or fancy espresso maker — aren’t worth insuring. But what would you do if your building caught fire or was damaged in an earthquake? ‍While your landlord likely already holds his or her own insurance policy, this won’t cover your personal belongings in case of damage or theft. You’ll probably want financial help as you build back your life — and that’s where renters insurance kicks in.

Unlike other insurance policies (like homeowners insurance, car insurance, or life insurance), renters insurance isn’t actually that expensive. Which is a good thing, considering that many properties require you to provide proof that you have renters insurance in order to sign a lease. So with that in mind, it’s a good idea to keep track of the going rates and to browse different companies in order to get the best deal. But how often should you shop around for renters insurance?

In this article, we’ll review how often you should shop for coverage, what you need to consider when purchasing renters insurance, and where to buy it.

How Often Should You Shop Around for Renters Insurance?

Shopping around for renters insurance annually can help you find the best rates, so consider looking for a new policy around your renewal date. Besides this “annual audit,” you should also shop around for renters insurance if you have a major life change — which, in the case of renters insurance, is usually a move. In the event you move to a new place, you’ll need to notify your renters insurance provider of your change of address and let them know if there are any new safety features or changes in the type of property you’re now renting.

Remember: some moves may require an entirely new renters insurance policy! Your new landlord may want a higher level of coverage, for example. If that’s the case, we recommend shopping around to make sure you’re getting the right level of coverage at the most affordable price point.

While insurance prices are regulated, they can rise (or drop) depending on other factors (like changes made by the state department of insurance) — which is why you should still shop around regularly to make sure you’re getting the best rates.

What to Look For in a Renters Insurance Policy

If you think your renters policy only covers the cost of damages incurred to your personal property, well, think again! Renters insurance punches way above its weight. (Did you know, for example, that it can sometimes cover not just your possessions, but those of your family or roommates?) And if you know exactly what your renters insurance covers, you’ll know how to avoid paying higher premiums when you shop for a new policy.

Personal Property

Renters insurance protects your personal items, such as furniture, jewelry, electronics, musical instruments, and most other assets you have in your home. While renters insurance also protects you against damages incurred from extreme events like fire, explosion, theft, windstorm, riots, vandalism, and water damage, keep in mind that renters coverage never provides earthquake or flood insurance coverage. Also, personal property coverage is subject to deductibles.

Your rates will be decided by your assets: The more expensive your things are, the higher you can expect your premiums to be. Which makes sense, given that you need to pay more to insure more expensive items (and to get paid out if they get damaged or stolen). Bear in mind that setting a higher deductible can reduce your premium significantly, but could also mean that you need to pay more out-of-pocket for minor losses.

Personal Liability

Your renters coverage will cover the expenses and any medical fees if someone sues you for property damage or bodily injury caused by your negligence. Should you need a lawyer, the policy will also cover your legal fees. For example, you can file a claim for liability insurance coverage if water leaks from your rental property and damages your neighbor's apartment.

To make sure your liability limits and coverage benefits are sufficient, we recommend comparing multiple policies from different insurance providers.

Loss of Use

Also known as temporary housing coverage, loss of use coverage will cover additional living expenses if your property becomes inhabitable for any of the reasons covered by the policy. So if, for example, your roof is damaged in a windstorm and you have to live somewhere else while it’s being repaired, your insurance will pay the expenses.

When buying a renters insurance coverage, make sure your new policy covers damages caused by water leaks, windstorms, and extreme weather conditions so that you can make a claim in the event of a loss.

Guest Medical Payments

If any kind of damage to your property results in a visitor to your rental getting hurt, your renters insurance also covers medical payments. As long as the accident occurs within your rental property, rental insurance will cover all medical bills, even if you (the policyholder) are not involved in the accident. But be forewarned: You must have proper evidence proving the injury happened in your rental unit.

Quality Coverage

As we walked through above, renters insurance should cover personal property, loss of use, personal liability, and medical payments. This will give you sufficient protection by ensuring that you are not entirely on the hook financially in case anything bad happens to (or in!) your rental property.

So do your research! Because having quality coverage brings peace of mind. To stay organized and make sure everything is covered, consider creating an inventory of your stuff. We also recommend collecting receipts for big ticket items, cataloging serial numbers for your electronics, and taking pictures of your belongings to determine their overall value. Going through this exercise will help you understand the cost of your assets and then determine which type of policy and what coverage limit best fits your needs.

How You'll Be Paid Out

When it comes to how you’re paid out, you’ll want to have a think as to whether you want to go with replacement cost coverage or the actual cash value. Replacement cost coverage reimburses you for the expense of replacing or repairing your possessions. If your TV is destroyed in a freak power surge, for example, your insurer will replace the unit with a brand new one under the replacement coverage plan.

Actual cash value (ACV), on the other hand, takes into consideration depreciation costs when calculating what a belonging is worth. These plans are usually cheaper, but getting one may mean that, in the wake of the aforementioned freak power surge, you can’t necessarily buy a new replacement for that damaged TV. Since you only received its cash value at the time the damage occurred, you may or may not have the funds to cover a new replacement.

Where to Shop for Renters Insurance

When you’re ready to shop for a new renters insurance policy, you should get quotes from at least three different insurance companies. That way you have a better sense of market rates, not to mention the level of coverage you can get for your money.

Comparing terms, coverage levels, and prices can be a challenging task when looking at each insurance provider individually. So check out Marble’s comparison tool, which can help you compare rates and shop for the best renters policy all from one convenient app.

Easily Switch Renters Insurance Policies with Marble

When the time comes to switch to a new renters insurance provider, Marble is here to make any and all quote comparison easy breezy. Using Marble’s comparison calculator, you can quickly compare policies from different renters insurance providers to find renters insurance with coverage limits that make sense for your needs. Just enter your information in the app and get all the quotes you could need to make the right decision for you.

‍Sign up for Marble today and manage all your policies from one single platform — and even earn rewards on your insurance, too!

How often should you shop around for renters insurance? (2024)

FAQs

How often should you shop around for renters insurance? ›

It's an excellent idea to re-shop your policy every year to ensure you're not missing out on better deals with a different company. Renters insurance is pretty easy to switch, so it's worth your time to be sure you're getting the best deal possible.

What is the most common amount for renters insurance? ›

Renters insurance is relatively inexpensive. According to NerdWallet, the average renters policy costs about $15 per month for up to $30,000 in personal property coverage. That's solid coverage for less than the cost of a few cups of coffee a week.

How should a person decide how much coverage she needs when selecting renters insurance? ›

Bottom line: Choose your coverage amount based on how much stuff you have and how much it would cost to replace them. Btw, if you need coverage for your big-ticket items, such as your jewelry or fine art, you'll want to look into our Extra Coverage (also known as scheduled personal property coverage).

Is renters insurance really worth? ›

Renters insurance coverage is almost always worth it. It is much more affordable than other policies, including home or auto insurance, and provides valuable financial protection. Even if you can save enough money to cover unexpected loss, renters insurance may be worthwhile.

Why is my renters insurance so high? ›

Large claim amounts and liability claims are the most likely to raise your renters insurance rates. Insurers may also charge you more for insurance if you have a poor credit score. Insurers have found that renters with lower credit scores tend to file claims more often than those with higher credit scores.

What is a good deductible for renters insurance? ›

You'll choose your deductible when you buy a renters insurance policy. A higher deductible means your claims will cost you less money out of pocket. Typically, renters insurance deductibles are $500 or $1,000, but companies often provide a range of options.

What is the average renters insurance in the US? ›

How Much Does Renters Insurance Cost? Renters insurance costs an average of $157 a year for a policy with $15,000 of personal property coverage. The average cost of renters insurance for a policy with $30,000 is $199 annually, and a $50,000 policy costs an average of $260 a year.

What are the 3 things renters insurance provides you with and what purpose does each of them have? ›

Renters insurance covers personal property, personal liability, medical payments and additional living expenses or loss of use, up to the limits of your policy. Learn more about what renters insurance covers and the types of renters insurance coverages.

Who should consider purchasing renters insurance? ›

However, if you want to protect your personal belongings, you may want to consider buying a renter's insurance policy. In addition to personal belongings, some policies will also cover living expenses if your apartment or home is uninhabitable due to damage.

Why do you think renters insurance is so much cheaper than homeowners insurance? ›

If you're looking into homeowners insurance for the first time, you'll notice that the cost of homeowners insurance may be more expensive than renters insurance. This is because a homeowners policy protects your home's structure and will typically offer more coverage than a renters policy.

What does renters insurance actually cover? ›

Renters insurance is an insurance policy that can cover theft, water backup damage, certain natural disasters, bodily injuries and more in a rented property. If you rent an apartment, home or even a dorm, renters insurance is recommended for protecting your space and belongings in the event of a covered accident.

Why do people not get renters insurance? ›

Some Feel That Renters Insurance is Too Expensive

It's a very small expense when you think about having to replace all of your furniture, appliances, electronics, clothes and every other item within your unit.

How many people don't have renters insurance? ›

55 percent of U.S. renters, or 61 million people, currently have renter's insurance policies. This number could rise to more than 65 million within the next year. 75 percent of insured renters are required by their landlords to obtain renter's coverage.

How to decrease the cost of renters insurance? ›

How can I save on renters insurance? You may be able to lower the cost of your policy with several renters insurance discounts, such as having multiple policies with Progressive, quoting in advance, paying in full, receiving documents by mail, and living in a gated or secured community.

What company has the cheapest renters insurance? ›

Which company offers the cheapest renters insurance? According to our research, State Farm and Toggle tend to offer the cheapest renters insurance policies at $10.50 and $12.59 per month, which is about 20% less the national average.

Does renters insurance increase after a claim? ›

In most cases, yes, your insurance premiums will increase after filing a renters claim. As it recalculates your premiums in the wake of a claim, your insurance company will generally consider the type, amount and frequency of claims. The more often you file claims, the riskier you are to insure.

What does a standard renters insurance policy cover? ›

Most renters policies will cover losses due to fire, smoke, theft or vandalism, and certain kinds of water damage. They don't cover losses due to floods. Visit the National Flood Insurance Program for information about flood coverage.

How much does a typical renters insurance policy cost per month quizlet? ›

Renters insurance is relatively inexpensive (average monthly premiums as low as $20) and can be even more affordable if associated with car or other insurance policies where multi-policy discounts are available.

Is Lemonade renters insurance good? ›

After reviewing more than 20 of the largest renters insurance providers in the country, our team rated Lemonade 4.6 out of 5 stars based on our in-depth methodology.

What are insurance premiums? ›

An insurance premium is the amount you pay each month (or each year) to keep your insurance policy active. Your premium amount is determined by many factors, including risk, coverage amount and more – depending on the type of insurance you have. This does not apply to all types of life insurance.

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