According to the National Fire Protection Agency (NFPA), 75,000 apartment fires changed many lives forever, causing 1.3 billion dollars in property damage in 2019 alone. It’s quite a shocking statistic.
More shocking is when you factor in that nearly two-thirds of people lose all or most of the possessions in apartment fires every year. According to the Insurance Information Institute, only 37% of renters actually have renters insurance!
Renters insurance cannot bring back priceless mementos, family pictures, and other sentimental items, but it can replace essentials like clothing, furniture, and other items. Is renters insurance worth it? How much is renters insurance?
We’ll dive into these questions and help you decide for yourself.
What Does Renters Insurance Cover?
According to this renters insurance checklist, renters insurance included three types of financial protection for renters:
- Coverage for personal possessions
- Liability protection
- Additional Living Expenses (ALE)
While renters insurance doesn’t cover the structure, such as the apartment you rented (that’s the landlord’s responsibility), it does ensure your family has personal coverage in the event of a fire, burglary, or some other covered disaster. How much would you be willing to pay for peace of mind in the event of an unforeseen disaster?
While renters insurance isn’t mandatory for renters, it certainly makes sense given the alternative. Let’s take a look at two scenarios:
The Story of Two Renters
Once upon a time, two families of renters were living in the same building. Both families lived a comfortable life with the money to pay their bills, take a vacation once a year, and enough money for a few extras for their two children. Each family lived on the apartment building’s third floor, commonly referred to as “the penthouse” by the families.
The families were good friends. Their children were roughly the same age and attended the same schools. They played sports in the same leagues and went to the same church.
On a late night in November, just shy of Thanksgiving, the families smelled the smoke and immediately went through their emergency preparedness drill for fires. Thankfully everyone was okay, and the families were happy to see each other, even as they watched their apartment building burn.
On that night, they were in the same boat until Mary saw her good friend Janet get on her cell phone. At first, she thought she might have been calling family from far away to tell them the news. No. Instead, she was on the phone with her insurance company.
She was giving her policy number and explaining the situation. She hung up the phone moments later and hugged her husband. She said, “we can’t replace everything, but at least we have each other.”
She whispered into her husband’s ear that they would be okay and were assured that they would have financial help during this tragedy.
Mary’s family, on the other hand, watched their possessions go up in flames. No insurance policy. No financial help. Everything was gone. As the weeks would go on, the paths of these two equal families began to shift.
While Janet’s family received a settlement and secured a new place, furniture, and new clothes, Mary’s family was housed at a shelter through their local church, receiving donations from the church, school, and sports leagues in the community. It would be months before Mary’s family would recover and find a new home, let alone furniture or their own belongings again.
While Mary’s family was able to relocate within the same district with a minor hiccup in their holidays, Janet’s family had to rent outside of their school district, and their children had to start at a new school.
While this sounds exaggerated, remember that two out of every three families don’t own renters insurance. What may have first sounded like hyperbole is actually more common than you would think.
What do you think Mary’s family would be willing to pay for a second chance to get renters insurance? Don’t feel the pain of Mary’s struggle. Get educated about protecting your family against tragedy.
How Much Does Renters Insurance Cost?
If Mary were an actual person, she would be surprised that renters insurance is affordable and can offer great assistance, given its economical price. How affordable?
According to NerdWallet, the average cost for renters insurance each month is as low as $14 per month! The average annual cost for renters insurance is only $168 per year. Not only that, this would be the price for $30,000 in personal property and $100.000 in liability insurance coverage and a $500 deductible.
For less than the cost for a month’s worth of coffee, Mary’s family could have had coverage. Think about that!
What are the Most Expensive and Least Expensive States?
Although the average is roughly $14 a month, each state and city have different renters insurance rates. Here are some statistics on the most and least expensive states.
The states with the most expensive renters insurance per month are:
- Louisiana: $21 per month
- Georgia: $20 per month
- California: $19 per month
- Mississippi: $19 per month
- Alabama: $19 per month
Quick question: Is peace of mind for your family worth $21 per month? Do you have renters insurance? If not, check out rates for your area here.
The states with the least expensive renters insurance per month are:
- Wyoming: $8 per month
- Alaska: $9 per month
- Iowa: $9 per month
- Vermont: $9 per month
- North Dakota: $10 per month
For less than the cost of a large pizza, you could have renters insurance, peace of mind, and a plan in the event of a worst-case-scenario. We don’t know about you, but that sounds pretty amazing!
Looking for renters insurance from a highly rated insurance company? Amistad Insurance has a 4.8 Google ranking!
How Much Is Renters Insurance Worth for Your Family’s Peace of Mind?
How much is renters insurance worth for your family’s peace of mind? Think about Mary’s family? We’re guessing she would have paid four, maybe even five times the average annual rate for her family.
The great news is you don’t have to feel like Mary’s family. You can make the smart choice for your family and enjoy great renters insurance at an affordable price.