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Renters Insurance Cost is Cheap

cost of renters insuranceThe National Association of Insurance Commissioners (NAIC) reports the average renters insurance policy costs consumers about $189 each year. If you break that down on a monthly basis, the average renters insurance cost is only $15.75, which proves that renters insurance cost is cheap.

States policy costs vary across the country. The difference in premium rates is attributable to many factors. The number one factor is the location because there are states that are high risk in earthquake, flood, windstorm, hailstorm, tornado, or hurricane. The renters insurance cost is also proportional to a state\’s cost of living which means that if New York\’s cost of living is high, the premium rate also is high.

Renters Insurance - Less Than $1 A Day

Let us take the case of Texas and North Dakota and try to explain how and why the average renters insurance cost is mostly defined by state. Statistics show that the state of Texas has the highest average renters insurance cost among all 50 states countrywide. Being the second largest and having one of the highest populations in the United States, Texas provides a lot of job opportunities, which attracts many people. Since most people who migrate or take a job in Texas are starting a new life, they would not be able to afford to buy a house so they will rent one.

Getting renters insurance in Texas is a little bit higher than the average renters cost – $261 per year. The reason for this is because of the natural disasters (hurricanes, tornadoes, hail storms, wildfires, flooding) that takes place in this state. Living in a high risk area poses a lot of risk for insurance carriers, which is why renters insurance in Texas is the highest.

Conversely, North Dakota has the lowest average cost – $119 per annum or $9.92 per month. Unlike Texas, the reason for having the cheapest premium rate among all states is because there is less risk to calamities and aside from this fact, the cost of living is low. In fact, a study was made and results show that from within the state\’s population, only 11.8% lives below the poverty line and when compared to the national average it is still at a minimal percentage – 13.6%. You might even be surprised to hear that one resident in West Fargo, North Dakota confirms that he only had to pay $66 per annum for his tenant insurance which covers $20k (personal property loss); $30k (personal liability); $1k (medical coverage), $500 (all perils deductible).

As mentioned earlier, the location is only one but not a single factor in computing for your premium cost. While you may find out how much is the average renters insurance cost of your state, there are other variables that also comes into play. The age of your house, the type of policy that you will purchase, the security or safety systems that are installed in your house, the amount of deductible you are willing to pay, your credit history, the value of the coverage and more.