Does Renters Insurance Increase Annually?
The cost of renters insurance and whether it increases depends upon several factors.
Most people who have rented an apartment or a home, or rented out their property to others, have a clause in their rental contract mentioning renters insurance. While it may seem like renters insurance is only necessary if you own very expensive items, such as nice furniture, in reality, renters insurance protects you against a number of potential liabilities that can occur, such as if someone is injured while in your home.
What Does it Cost? What Makes it Increase?
The cost of renters insurance depends upon a few factors, such as how much insurance you purchase, what type of coverage you obtain, and what you own. On average, it costs approximately $14 to $25 per month to have renters’ insurance, depending upon where you live and how much coverage you purchase: For example, $14 per month often corresponds to approximately $15,000 worth of coverage, while $25 per month correlates to approximately $50,000 in coverage.
The average cost of renter’s insurance in Michigan is $149 annually, or $12 per month. However, some of the factors that can impact the cost of your insurance include the following:
- Coverage level: For example, if you have a lot of - or especially expensive - belongings, you may choose to have more coverage
- Claims history: If you have filed a claim in the past, you may see your rates increase in the future
- Credit history: If you have poor credit, your insurance rates will likely be higher
- Deductibles: The higher your deductible, the lower your rates will be, but you will also be paid out less in the event of a claim
- Discounts: Many insurance companies offer discounts if you are a member of a credit union, college alumni association or certain professional societies.
- Location: Prices are higher in some cities than others, for example, cities where there are higher rates of break-ins tend to have higher insurance rate costs
What Does It Protect?
Renters can save you thousands of dollars if your belongings are stolen or if destroyed by a peril covered in your policy, such as a fire, as well as any additional expenses that might come up during such an incident, such as hotel stays and restaurant fees in case your property is left temporarily uninhabitable. Renters insurance also includes liability to cover someone else’s property repair or medical costs if you are at fault for an incident that causes damages. For example, if your dog bites someone at the park, the insurance can cover costs related to any dog bite injury, as well as any related legal costs.
Contact Our Seasoned Michigan Insurance Providers with Questions
Hartman Insurance proudly serves Ann Arbor and Saline and surrounding counties. We are committed to helping our clients and their families feel safe and secure with their coverage. Contact us today to learn more.