Article by Bo A Miller

The Independent Insurance Agents and Brokers of America or IIABA revealed in one of their reports that the average cost of Renters Insurance is about $ 240 a year, $ 12 a month or $ 3 per week. The average cost is for an insured policy with a content replacement or property coverage of $ 30,000 and liability coverage that amounts to $ 100,000. The computation of your premium rate actually depends on a lot of factors: age of your house (the older your house is the higher your premium cost); the area or location where you live (the high-risk area and the higher cost of living means higher premium rate); how much you are willing to pay for your deductible (the higher the deductible the lower the premium rate), and lastly is your insurance company.

Do you belong to the 2/3 of those who are renting an apartment or house and yet do not carry a renters insurance? Statistics were drawn out from IIABA’s consumer survey and was conducted by a third party through a national consumer telephone survey. Out of the 1,000 people whom they’ve asked, 64.4 percent answered “no” to having a renters insurance policy even when the average cost of renters insurance is not that really expensive because this is the top reason and misconception of these individuals. There were at least 2.2 percent who answered “don’t know” which means that they are not aware that there exist an insurance policy designed for those who are renting.

To erase the misconception of an expensive premium cost for insurance policy of rental properties, here is the data about the average cost per state. The figures are based on the 2006 data of the National Association of Insurance Commissioners. The US countrywide cost is $ 189. The state that has the highest average cost of renters insurance is Texas with $ 261 and the state that has the lowest average cost of renters insurance is North Dakota with only $ 119 and somewhere in the middle is Washington with $