How the Renters Insurance Cost Estimator Works
Korea's jeonse system involves handing a landlord a lump-sum deposit worth tens of thousands of dollars — often 50-80% of the home's value — with the expectation of getting it all back at lease-end. Because that much money is at risk, a dedicated deposit-return guarantee insurance market exists through HUG and SGI Seoul Guarantee. Nothing like it exists in the United States, because nothing like jeonse exists here: U.S. security deposits are typically capped at one or two months' rent by state law, and many states already require landlords to hold deposits in a separate escrow account or pay tenants interest on them. There's simply not enough at stake to insure.
What U.S. renters actually buy instead is renters insurance — a completely different product that protects your personal belongings (furniture, electronics, clothing) against theft, fire, and other covered events, plus liability coverage if a guest is injured in your unit or you accidentally cause damage to someone else's property. This calculator estimates a typical monthly premium based on how much personal property coverage and liability coverage you choose, using industry rule-of-thumb pricing: a small base fee plus roughly half a percent of your property coverage amount per year.
Real quotes vary by insurer, state, your credit-based insurance score, claims history, and add-ons like identity theft protection or scheduled coverage for expensive items (jewelry, cameras). Treat this as a ballpark for budgeting — get quotes from a few insurers before you sign a lease to find your actual rate, which for many renters lands somewhere between $15 and $30 a month.
Frequently Asked Questions
Because that product doesn't exist in the U.S. — it exists in Korea specifically to protect large jeonse deposits, which can equal 50-80% of a home's value. U.S. security deposits are typically just one to two months' rent, and many states already require landlords to hold deposits in escrow or pay interest on them, so there's no market for insuring deposit return. Renters insurance instead protects your belongings and liability.
It typically covers your personal property against theft, fire, and other named perils, plus liability coverage if someone is injured in your rental or you accidentally damage someone else's property. It generally doesn't cover flood or earthquake damage, which need separate policies.