There’s no mistaking it: North Carolina is one of the most exciting places to move to right now. Not only is Charlotte among the fastest-growing cities in America, but the mountains in Asheville, the Raleigh -Durham research triangle, and the breathtaking coastline make North Carolina a dynamic state with something for everyone.
So if you’re moving to North Carolina or starting a lease in a new place there, your landlord might require you to have renters insurance. If so, read on for the basics of renters insurance and how to find it cheap in North Carolina. Even if it’s not required, you’ll want to consider buying a renters insurance policy.
So what does renters insurance cover? There are three main components of most renters insurance policies: liability coverage, personal property coverage, and additional living expenses (also called “ loss of use ”).
Liability coverage protects renters from legal fees and medical bills resulting from injuries that happen to anyone on their rental property. Like if your dog sitter cuts herself slicing vegetables or there’s a bad accident at a party, you may be covered if someone decides to sue you.
Personal liability is a very important aspect of renters insurance because legal and medical expenses can be devastating without liability protection.
Personal property coverage insures you from damage to your stuff, whether that’s from vandalism, water damage, a burglary, or some other covered loss. Property damage happens all the time, so this is nice to have.
When you sign up for personal property coverage, you may have a couple of coverage options: replacement cost, which reimburses you enough to buy new versions of the items you lost (this is more expensive), or actual cash value, which compensates you for the depreciated value of the item at the time it was damaged.
Additional living expenses coverage helps you get compensated for a hotel room or other accommodations necessary when property damage requires you to temporarily vacate your home while repairs are made.
You can have the comfort of liability insurance and personal property protection in your rental property, all so cheap that you’ll barely notice it in your budget. Insurify ’s quote-comparison tool, which is free and fast, will give you a slate of prices that will help you make the best decision for you and your home. Learn everything you need to know about buying renters insurance and more on Insurify’s blog.
What factors determine the cost of renters insurance in North Carolina?
Renters insurance rates are set by a handful of components. Read on and you’ll get a sense of how to avoid potholes that will raise your premium while still making sure your policy covers your bases.
The amount of coverage you need will definitely affect your renters insurance premium. Liability insurance generally has limits starting at $100,000, but if you need more than that, you’ll pay more for that extra insurance.
It can be a delicate financial decision, but if it’s worth it to you, you may be able to lower your monthly premium by choosing a higher deductible on your renters insurance policy. If you ever make a claim, the deductible will be the sum you pay before you start to get reimbursed up to your coverage limit.
When you choose a deductible, ask your insurer to give you a separate quote for each deductible they can offer you. Then, you can make sure the savings are worth it. And don’t set a deductible so high that you can’t pay it out of pocket at a moment’s notice.
Value of Property
When you buy a renter’s insurance policy, your insurance provider will ask you to estimate the value of all the belongings in your home. If you own super valuable stuff, you’ll pay more to protect it.
Just like with homeowners insurance, the more valuable the property you live on, the more expensive the place will be to cover. A duplex will command a higher rate than a studio in a big apartment building, and both will be cheaper to insure than a luxury condo or large house.
As usual, the higher your credit score, the more likely you’ll be offered a cheaper premium. It’s not fair, but it’s still how the system works in North Carolina. Not every insurance provider will check your credit or weigh it as heavily in setting your premium. So if credit is a challenge for you, it’s all the more important to shop around.
Certain dog breeds and other animals might hike up your insurance rate because they require extra liability insurance. If you have a pooch, find an insurance company that has cheap pet coverage.
North Carolina -Specific Factors
Here’s a reason to love living in North Carolina that you’ve probably never thought of. Thanks to a state ratings board, North Carolina renters insurance is cheaper than the national average! But if you live in a coastal area where tropical storms could pose a greater risk of property damage, you might not benefit quite as much from those low rates.
[infogram showing average cost of renters insurance in North Carolina compared to New York, California, Florida, and Texas (or for cities––NYC, Los Angeles, Miami, and Houston)]