I think I know why my estimates have been so high, compared to what some of you have told me you pay. I may be wrong, and if so I’m hoping you’ll let me know.

So I went to a couple of insurance websites, as well as an online aggregator. Oddly (I don’t know if it was a glitch, or if there were no results) the online aggregator didn’t have anything for me. I even tried it a couple of times just to make sure it wasn’t the computer. Still nothing. Maybe I’ll try another time. The two websites I went to directly gave me the same quotes, to the penny. So, that didn’t help too much either.

The two quotes I did get, at the highest were $249. This included $100k liability (most default values were $50k), property value of $20k, included replacement cost value as well as drain/sewer coverage. No clue if I need all that, but it was interesting to see that and compare it with different deductibles and options.

My conclusions:

Deductible: for maybe $0.10 a month I could have a $250 deductible as opposed to a $500. I could be wrong, but I figure its worth the $0.10 for a smaller deductible, right?

Liability Coverage: Similar here. For about $0.40 you go from $50k to $100k. How much do I need? I mean, I could go for saving $5 a year, but if anyone went after me for more than $50k, I’m sure I’d be grateful to have that extra coverage.

Personal Property Coverage: I left this at $20k and didn’t toy with it. Sure, my stuff is probably worth a bit less….

Sewer or Drain Backup Coverage: Ok, I really don’t know if I need this. On the one hand I live on the 2nd floor….if a sewer backs up and floods the street I won’t really get any damage….unless my car is, but wouldn’t car insurance cover it? (Just an assumption, but I really have no clue, and am too lazy to start reading up on my car insurance coverage, lol.) On the other hand….I do have drains and a toilet. If that backed up for any reason beyond my control and I didn’t have coverage I’d be out of pocket. This is about a $0.70 difference a month.

Replacement Cost Coverage: This is the big one. If this isn’t selected, and I need to file a claim they would base the coverage of the value of my belongings minus depreciation. That kinda sucks. However, I’m curious to know how they calculate depreciation? How much does a bed depreciate in a year, per se? Or a mattress? I’m sure my laptop would be worth close to nothing considering it’s two years old, and my tv….well, let’s just say this, it has a VHS player built into it (a dinosaur, practically, huh? lol). This coverage seems to be about $70 more than their regular “actual replacement cost” method of calculating. (Also, as of right now I have close to no furniture….would I still be covered later if I bought a bunch of stuff after I bought the policy?)

I guess it all comes down to the gamble. How likely is it the apartment will be robbed? How likely is it the place will burn down? If it was more money, I might be willing to take that gamble, but $20 a month really doesn’t seem like much. 

One of four things could happen: 1) I don’t get insurance, nothing happens; 2) I don’t get insurance, something happens, I have to pay to replace everything (cost: over $2,000 at the very least); 3) I get insurance, nothing happens. I’m out $250 (or $20/month); 4) I get insurance, something happens, I pay $500 (policy plus $250 deductible) and get reimbursed for everything I have to replace.

I’m not much of a gambler.

All of that being said, for those who do have renter’s insurance, what did you decide you could do without? Do you think I’d be better off with “replacement cost” or “actual cost” for replacements? I’d be interested to hear your opinions!