What you need to know to use a renters insurance calculator
To use the renters insurance calculator, have a few key pieces of information ready and plug them into the calculator:
- Start by entering your ZIP code
- Choose the amount of personal property coverage you need
- Choose your liability limits
- Choose a deductible you can afford in the event of a claim
- Enter these into the renters insurance calculator and start comparing quotes
It’s always a good idea to compare quotes from multiple carriers, whether you need a brand new renters policy or are facing a renewal of your current policy.
How much renters insurance do I need?
You need enough renters insurance to repair or replace all your personal property if anything is damaged in a fire, stolen or vandalized.
“A wise first step is to take an inventory of your personal belongings,” says Lynne McChristian, Director, Office of Risk Management & Insurance Research and Senior Instructor at the Gies College of Business, University of Illinois. “Conduct a room-by-room survey of what you own, noting the higher-value items, such as appliances, furniture and electronics. Know how much it would cost you to replace all that stuff – and that is the amount of renter’s insurance you need.”
“Additionally, having that inventory will come in handy if you ever have to make an insurance claim because it provides necessary documentation,” McChristian says.
Another feature of renters insurance is personal liability coverage. This protects you from lawsuits if you damage someone else’s property or cause bodily harm to someone. It also handles bills from accidents on your property, like someone falling in your home. The standard coverage is $100,000, but you may want to increase that coverage depending on your assets and risk level.
How to estimate renters insurance coverage
To estimate your renters insurance coverage:
- Take an inventory of all your personal belongings. Whatever amount it would take to replace all of your clothing, furniture, appliances, jewelry, artwork, electronics, etc. is the dollar amount of personal property coverage you should purchase.
- Then decide if you want actual cash value (ACV) or replacement cost coverage. The default is ACV, which means your insurance company pays out a depreciated amount for your damaged or lost items. Replacement cost coverage costs a little more, but the insurance company pays for a brand-new item of like kind and quality at today’s prices.
- Decide how much liability coverage you want. Most experts recommend $300,000 of liability coverage, but you can decide how much you’re comfortable with based on your assets and risk level.
- Talk to your agent to get a quote for renters insurance or use an online renters insurance calculator to compare quotes
How to compare renters insurance quotes
To compare quotes, have your ZIP code ready as well as your coverage amounts and deductible amount. Plug them into the renters insurance calculator to see estimated costs. With that knowledge handy, you can start requesting personal quotes from renters insurance companies.
You should always compare quotes from multiple carriers. This is the best way to get a good deal. Remember that while a high deductible means a low rate, you’ll have to pay that amount if you file a claim.
For example, if there is a storm that damages the roof, causing water to destroy your brand-new sofa, the deductible will be subtracted from the claim settlement amount. If your insurance company agrees the couch is worth $2,500 and you have a $1,000 deductible, the insurance company will only send you a check for $1,500.
Another thing to consider when comparing quotes is what kind of customer service ratings and third party ratings an insurance company gets. These are important factors. Look at AM Best ratings, NAIC complaint scores and J.D. Power customer service scores. Our Best Renters Insurance Companies of 2024 is a good place to start.
What factors are used to calculate renters insurance rates?
Insurance companies look at the following factors to calculate your renters insurance rates:
- Your ZIP code
- Your coverage amounts
- Your claims history
- Weather patterns in your area
- Theft and crime trends in your ZIP
- Your credit score, in most states
Severe weather, high crime and a history of claims translate to higher rates.
Renters insurance FAQs
How much is renters insurance?
The average national cost of renters insurance is about $22 per month. To find out how much renters insurance costs in your particular area, use a renters insurance calculator or check out renters insurance rates for 2024.
How much is $100K renters insurance in liability coverage?
Depending on where you live and other factors, renters insurance for $100K of liability could be as cheap as $5 a month or up to $150 a month. Liability protection doesn’t affect rates as much as personal property coverage.
Is renters insurance expensive?
Renters insurance is relatively inexpensive because you only have to cover your personal belongings and liability– you don’t have to insure the structure of the building. That’s the job of your landlord’s insurance.
Can you have renters insurance on two places?
Yes. You can have renters insurance in more than one location. However, your renters insurance covers your belongings anywhere in the world, so if you’re a snowbird renting a condo for a few months in the winter and are only bringing a portion of your belongings, you likely don’t need a separate policy.
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