In this economy no one wants to be in a location that is permanent... what if one looses their job and needs to move out of state to find work? If they owned a home this would be a huge problem. Renting provides the flexibility for many that is needed in a tight job market. Along with the benefit of being able to move quickly if needed, many feel renting is cost effective and holds less risk than owning a home.
Single family homes are not the best investment option that they were in the recent past so that has also made renting a popular choice for many who feel they would rather invest their money in something else besides a home. Renting can also be cost effective since a renter generally is not required pay property taxes and homeowners insurance, right?
Yes, this is true. Property taxes are a requirement of the owner of a residence so therefore the renter is not required to pay the property taxes and insurance is also commonly considered a requirement of the owner of a residence so renters tend to avoid worrying about insurance since many feel they are covered under the property owners insurance policy.
Unfortunately this thinking is wrong. Yes, renters insurance is not required and the property owner does carry insurance on the property but not on any of the renter's personal property. Many renters find this out too late, usually when it comes time to file an insurance claim.
There is good news for renters though: The low cost of renters insurance is available to all renters! Yes, renters insurance costs are extremely low compared to what a homeowner would need to pay for homeowners insurance. This is primarily because a renter only needs insurance for their property and liability and not the building they are renting. The building structure is covered by the property owners insurance policy.
When one hears "low cost renters insurance" they can still be wondering what that means. Of course low cost renters insurance can mean different things to different people depending on their income. So, then, the better question would be what is the average cost of renters insurance? Well, that again is dependant, as with all insurance, but here are some basic guidelines on renters insurance costs that should be helpful to all renters:
Average Cost of Renters Insurance: $12 per month for $30,000 in property coverage and $100,000 in liability coverage.
(this average cost of renters insurance information is according to the Independent Insurance Agents & Brokers of America)
So, considering the average cost of renters insurance is $12 per month, no renter should be going without renters insurance. But, is $30,000 in property damage enough? Again, that is dependant on what property the renter owns and how they would want it covered. And, the liability coverage limit may need to change depending on one's needs also. This bottom line still remains: although the $12 per month average cost of renters insurance estimate is a very basic renters insurance policy, having a basic renters insurance policy is far better than having no renters insurance policy at all.
As always, when one is shopping for renters insurance costs, seek out a reputable insurance agent. A good insurance agent will be able to find a low cost renters insurance policy that will work best for each individual's needs. The most important first step for one to take is to start the process of obtaining some renters insurance, even if that means the lowest cost renters insurance option available.