As of 2013, the average annual cost for renters insurance was $188. Divided over 12 months, that comes to a monthly premium of just about $16. For less than $20 a month, you can get hundreds of thousands of dollars in insurance protection.
Spending $16 a month might sound like a lot when it comes to paying for a service you may never use. It’s easy to talk ourselves out of making such a purchase, but it’s just as easy to talk ourselves into it.
Renters insurance is far less expensive than the other stuff we’re happily willing to pay for. You’ve probably already spent hundreds of dollars putting the place together, from buying the furniture to your kitchen appliances. But ask yourself this: what is the difference between spending $16 a month to protect your stuff and spending $75 and more to own it?
We at CoverHound have compiled a list of things that are more expensive than renters insurance. These are things that we’re often willing to pay for for style and comfort, so why not also pay for something that protects us at our most vulnerable?
Renters Insurance Has You Covered
Before we get into the average costs of our furnishings, let’s take some time to better understand just how renters insurance protects us.
By its most general definition, renters insurance covers the financial cost of any of your personal possessions that are damaged, lost or stolen. There are three types of renters insurance:
Liability: This insurance type protects renters against lawsuits for property damage or bodily injury that you or your roommates cause to the rental property or to visitors in your space.
Personal Possessions: This insurance type protects your personal belongings in the event of theft, vandalism, fire, explosion, lightning, windstorm and/or smoke damage.
Additional Living Expenses: Commonly referred to as ALE, this insurance type covers the cost of your temporary address change should your rental be severely damaged or destroyed by a natural disaster.
With a combination of the three policies listed above, you can insure your items for their Actual Cash Value or Replacement Cost. Let’s quickly go over what these two plans entail:
Actual Cash Value: This will pay for the depreciated dollar amount of your personal items. This insurance type deducts monetary worth from items deemed worn or damaged before they were stolen.
Replacement Cost: This will pay the full dollar amount (or actual cost) of the damaged, missing or stolen item.
It Cost How Much?
Money adds up fast when we move into a new a place, and not every apartment complex offers furnished rooms. Taking the lowest cost prices of 10 items from three different-tiered furniture stores, here is the cash amount your $16 is insuring:
ItemIKEAWayfairCrate&BarrelSofa$179$109.99$899Loveseat$119$209.99$500Area Rug (8' X 10')$69.99$69.99$299.99Coffee Table$24.99$21.99$199Media Console$39.99$27.99$349Bookcase$29.99$34.99$129Dining Table$65$51.99$249Dining Chair (1)$12.50$54.99$49.95Floor Lamp$7.49$18.40$104.97Table Lamp$4.99$14.76$79.95
There are only four items on the entire list that cost less than renters insurance, and renters insurance is hundreds of dollars less expensive than the most expensive on the list. For just $16 a month, you are saving thousands. Get your free renters insurance quote using CoverHound today!