Estimate your potential monthly renters insurance premium.
100,000
300,000
500,000
500
1,000
1,500
2,500
Excellent (720+)
Good (670-719)
Fair (600-669)
Poor (below 600)
Estimated Monthly Premium
—per month
This is an estimate and actual costs may vary based on location, provider, and specific policy details.
Understanding Renters Insurance Costs
Renters insurance is a vital, yet often overlooked, protection for individuals who rent their living space. It provides financial coverage against losses to your personal belongings and offers liability protection in case of accidents on your rented property. The cost of renters insurance is generally quite affordable, making it an essential part of any renter's financial safety net. This calculator provides an estimated monthly premium based on several key factors.
Factors Influencing Your Renters Insurance Cost
The premium you pay for renters insurance is determined by a combination of individual choices and risk assessment factors. Here's how each input in our calculator plays a role:
Personal Property Coverage: This is the maximum amount the insurance company will pay if your belongings are damaged or stolen due to a covered event (like fire, theft, or vandalism). The higher the coverage amount you choose, the higher your premium will generally be, as the insurer is taking on more potential risk.
Liability Coverage: This protects you financially if someone is injured in your rented home and sues you, or if you accidentally damage your landlord's property. Common liability limits are $100,000, $300,000, or $500,000. Higher liability limits offer more protection but can slightly increase your premium.
Deductible: The deductible is the amount you agree to pay out-of-pocket before your insurance coverage kicks in for a claim. A lower deductible means the insurance company will pay more if you file a claim, so it typically results in a higher premium. Conversely, a higher deductible usually leads to a lower premium.
Credit Score Tier: In many states, insurance companies use credit-based insurance scores to help determine premiums. Studies have shown a correlation between credit history and the likelihood of filing claims. Individuals with better credit scores often receive lower premiums, as they are perceived as lower risk.
How the Estimate is Calculated
This calculator uses a simplified, proprietary algorithm to estimate your monthly premium. It assigns a base rate and then adjusts it based on the factors you input. The general principle is:
Coverage Amounts: Higher coverage typically increases cost.
Deductible: Lower deductible typically increases cost.
Credit Score: Better credit typically decreases cost.
The exact weighting of each factor varies and is proprietary. The formula aims to reflect common industry pricing models, providing a reasonable ballpark figure.
Why You Need Renters Insurance
Even if your landlord has insurance, it typically only covers the building structure, not your personal belongings. Renters insurance provides essential protection for your furniture, electronics, clothing, and other possessions. It also offers crucial liability coverage, which can save you from significant financial distress if an accident occurs in your rental unit. Given its low cost, renters insurance offers exceptional value and peace of mind.
function calculateRentersInsuranceCost() {
var personalPropertyCoverage = parseFloat(document.getElementById("personalPropertyCoverage").value);
var liabilityCoverage = parseFloat(document.getElementById("liabilityCoverage").value);
var deductible = parseFloat(document.getElementById("deductible").value);
var creditScore = document.getElementById("creditScore").value;
var monthlyPremium = 0;
var baseRate = 15; // Base monthly rate in dollars
// — Personal Property Coverage Adjustment —
// Assume a cost per $1000 of coverage, increasing with higher coverage
var propertyCoverageCost = (personalPropertyCoverage / 1000) * 0.20; // $0.20 per $1000 coverage
if (personalPropertyCoverage > 50000) {
propertyCoverageCost += (personalPropertyCoverage – 50000) / 1000 * 0.05; // Slightly higher rate for very high coverage
}
monthlyPremium += propertyCoverageCost;
// — Liability Coverage Adjustment —
// Less impact on premium, but higher limits can add a small amount
if (liabilityCoverage === 300000) {
monthlyPremium += 1.5;
} else if (liabilityCoverage === 500000) {
monthlyPremium += 3.0;
}
// — Deductible Adjustment —
// Lower deductible = higher premium
if (deductible === 500) {
monthlyPremium += 4.0;
} else if (deductible === 1000) {
monthlyPremium += 2.0;
} else if (deductible === 1500) {
monthlyPremium += 0.5;
}
// Deductible of 2500 has no additional increase
// — Credit Score Adjustment —
var creditScoreMultiplier = 1.0;
if (creditScore === "excellent") {
creditScoreMultiplier = 0.85; // Best rates for excellent credit
} else if (creditScore === "good") {
creditScoreMultiplier = 0.95;
} else if (creditScore === "fair") {
creditScoreMultiplier = 1.15; // Higher rates for fair credit
} else if (creditScore === "poor") {
creditScoreMultiplier = 1.40; // Significantly higher rates for poor credit
}
monthlyPremium *= creditScoreMultiplier;
// Apply base rate and ensure a minimum premium
monthlyPremium = Math.max(baseRate, monthlyPremium);
// Final calculation to get a cleaner number and add a small buffer
monthlyPremium = monthlyPremium * 1.05; // Add a small buffer for other factors
monthlyPremium = parseFloat(monthlyPremium.toFixed(2)); // Round to two decimal places
// Display the result
if (!isNaN(monthlyPremium)) {
document.getElementById("monthlyPremium").innerText = "$" + monthlyPremium.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("result-container").style.display = "block";
} else {
document.getElementById("result-container").style.display = "none";
alert("Please enter valid numbers for all fields.");
}
}