Many renters hesitate to get renters insurance because they assume it’s expensive. The truth is that renters insurance is usually very affordable, often costing less than a daily coffee habit.
Here’s a clear breakdown.
Average Renters Insurance Costs
Monthly premiums: $10–$25 per month for standard coverage
Annual premiums: $120–$300 per year
Cost depends on:
Location (urban areas tend to be slightly higher)
Coverage amount (personal property and liability limits)
Deductible amount
Type of coverage (replacement cost vs actual cash value)
Factors That Affect Price
Coverage Amount
Higher personal property limits increase the premium slightly.
Deductible
Higher deductibles lower monthly costs but increase out-of-pocket expense if you file a claim.
Location & Risk Factors
Apartments in areas prone to theft, water damage, or fire may cost more.
Insurance Company Discounts
Multi-policy discounts (bundling with auto)
Security features (locks, alarms, cameras)
Sample Cost Scenarios
Renter Type Coverage Deductible Approx. Cost / Month
College student $15,000 / $100,000 liability $500 $10–$12
Young professional $25,000 / $300,000 liability $500 $15–$18
Couple with electronics $40,000 / $300,000 liability $500 $20–$25
Tips to Save on Renters Insurance
Increase your deductible slightly
Bundle policies (auto + renters)
Ask about security discounts
Avoid underinsuring or overinsuring. It’s cheap insurance when done right
Frequently Asked Questions
Q: Can I get renters insurance for under $10/month?
Yes, in some cases, but coverage limits may be lower.
Q: Does having a roommate reduce my cost?
Each tenant usually needs their own policy, so savings are minimal.
Q: Does my landlord’s insurance cover me?
No, landlord insurance only covers the building, not your belongings.
Conclusion
Renters insurance is inexpensive compared to the protection it provides. Understanding coverage limits, deductibles, and discounts ensures you pay only what’s necessary while fully protecting your belongings.