In 2020, the average cost of rent in North Carolina was about $1,078 a month for a one-bedroom home. While not exorbitant, NC renters often look to save as much money as possible on their monthly dues.
That’s why people get worried when they hear about renters insurance. What is it? Why do I need it and how much will it cost me?
Looking up “renters insurance North Carolina” on Google won’t give you the full picture. But we’re here to help.
In this guide, we’ll be outlining everything you need to know about renters insurance coverage in the state of North Carolina.
What Does Renters Insurance Cover?
Sometimes you just can’t prevent some situations, such as someone breaking into your home, theft, or an injury. This is where renters insurance comes in.
The first type of renters insurance is personal property. It covers the cost of replacing stolen or lost items like clothes, furniture, and electronics up to the maximum limits of your policy.
Liability coverage covers the cost of repairs if you damage someone else’s property. It also covers a guest’s medical bills if you’re somehow responsible.
If you find your place of rent to be damaged or inhospitable, renters insurance can also cover the cost of hotels if needed.
What Is a Renters Insurance Premium?
When you’re shopping around for renters insurance, and renters policy in general, you’re going to hear a lot about premiums. But what is a premium?
A premium is a certain amount of money that you agree to pay in return for your insurance company agreeing to some amount of risk. Once you pay your premium, the insurers agree to cover the costs of damages if something happens.
In North Carolina, renters insurance premium is based on the amount of risk you pose for the insurer. It’s usually based on things like where you live and your previous history.
You generally pay for renters insurance premiums in advance. Generally speaking, that money is yours until something happens where the insurers need to provide coverage.
Now that we’ve got the basics out of the way, let’s look at some renters insurance details specific to North Carolina.
Is Renters Insurance Required in North Carolina?
One of the most frequent questions that renters ask is whether it’s mandatory to get renters insurance in North Carolina.
The short answer is, no, or at least not by law. Some landlords may require you to have renters insurance to live in their apartments.
Oftentimes, tenants can get renters insurance provided by their landlords. We, however, believe it’s a good idea for North Carolina residents to get their own renters insurance.
Most times, landlords don’t offer the best renters insurance packages. It might not cover damages to your personal property. When a fire, burglary, or accident occurs, you need your own comprehensive renters insurance package.
Renters Insurance North Carolina Costs
While it’s a great idea to have renters insurance in North Carolina, people are still wary of adding the cost of renters insurance to their monthly bill.
So how much does renters insurance cost in North Carolina?
Luckily for NC residents, renters insurance is relatively cheaper in this state than in others. An organization called the NC Rating Bureau (NCRB) monitors and sets rates allowable to charge.
They typically set the prices that insurers can charge for renters insurance. Carriers can charge more than the NCRB’s numbers, but it’s not too common.
Renters insurance generally isn’t very expensive, but the price regulation that occurs in North Carolina makes it especially cheap. The national average coverage cost is about $14.
In North Carolina, the average monthly costs are about $15 to $20. It can even go as low as $7 a month. It’s cheaper, but luckily the amount of coverage is relatively the same as in other states.
What Determines Renters Insurance Costs in NC?
With all that being said, renters insurance costs aren’t static across all North Carolina residents. There are plenty of factors that determine your monthly rate.
It’s important to understand these factors so you can get an idea of how much you might pay for insurance while renting.
Like we mentioned earlier, renters insurance in North Carolina generally costs less than in other states. That being said, where you live might affect your monthly premiums.
If you live in a flood-prone area, normal renters insurance might not cover those damages. You might need to get additional NC renters insurance as a result.
Coverage and Deductible
This leads to the type of coverage you end up buying. Some packages might cover things like flood or disaster-related damages that are more expensive. Maybe a policy might not cover stolen jewelry, but another more expensive one does.
Deductible, or the amount you pay before the insurance coverage starts, also affects your overall costs. The more you pay for deductibles, the less you pay for your premiums.
Cash Value vs. Replacement Cost
Cash value refers to how much the insurance company will pay for a stolen or damaged product in your home.
Say a refrigerator that cost $800 five years ago depreciated in value to about $350. Then the insurance company will pay $350 if it gets stolen or damaged.
Alternatively, replacement cost coverage lets you replace stolen or damaged items with products of equal market value. They usually cost more in premiums, but it’s obviously better coverage.
Why Is Renters Insurance Difficult to Find?
Renters in North Carolina might find it hard to find renters insurance policies. Why is that?
Part of it is that insurers don’t offer standalone insurance coverage. This is because of how the NCRB sets standardized rates, which means companies will operate at a loss if they sold individual policies.
Geography also varies greatly in North Carolina. This makes underwriting significantly harder in the state. Coastal risk sometimes makes insurers hesitant to write in certain parts of the state.
So when you look up “renters insurance North Carolina,” keep those factors in mind to find the right insurers.
Get the Right Renters Insurance Today
Finding renters insurance in North Carolina is an involved yet achievable process. Use this guide to have all the background information you need to find the right policy for you!
Are you searching Google for “renters insurance North Carolina”? Look no further! Contact us today to get the right coverage as a NC resident.