The Average Insurance for Renters
If you plan to rent a home, apartment or even just a room in the near future, the landlord is most likely going to ask you to get insurance. Insurers offer a special, inexpensive policy to people who lease apartments or homes called renters insurance. Learn more about the average insurance policy for a renter to decide what type of policy you want to get for your own apartment.
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Average Cost
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The average cost for renter's insurance is about $12 per month, according to the Independent Insurance Agents & Brokers of America. The premium cost varies depending on the coverage options and levels the renter selects, as well as the area where the renter lives. The average monthly cost also varies according to the amount of a deductible the renter agrees to pay per incident (the higher the deductible the lower the average cost).
The Average Renter's Situation
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The average renter doesn't have insurance for his belongings. About two-thirds of tenants do not have renter's insurance, according to a survey by International Communications Research. The lack of coverage could be due to the belief that the landlord will replace the tenant's property in case of an incident, but the landlord is commonly only responsible for his own property.
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The Claim Process
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If an incidence of loss occurs, the renter must report it to the insurance claim department immediately along with a police report if an incidence of theft or vandalism is involved. She must complete a claim form, provide photos of the damage (if applicable) and also provide a list of the items requiring replacement. The common policy reimburses for the actual cash value of each item on the renter's list after it has been used rather than the price of replacing the item today. If approved, the insurer then sends a check for the covered amount less the deductible.
Other Considerations
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The renter can sometimes lower the cost of the renter's policy by agreeing to pay for the entire year's coverage upfront. When paying monthly, he must add the cost of making installment payments as well. Some insurance companies require a one-time payment since the average monthly cost of renter's insurance is relatively low compared to other types of policies. Since a renter commonly leases for a year, it makes sense for him to simply include the cost of a one-time renter's insurance premium for a year as a part of the cost of moving into the apartment. Finally, it is sometimes best to keep the policy active even when moving from the apartment as some insurers cover the items when in transit to a new residence.
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