Skip to main content

How Much is Renters Insurance?

happy african american mother with child outside of home

You’ve just decided on a new apartment and with everything going on, you can’t wait to get settled. You know you need coverage for your place and you’ve started to think about renters insurance, but you’re probably wondering, just how much does renters insurance cost? While renters insurance rates vary depending on a number of factors, it typically costs less than you’d pay for a pair of movie tickets. Before you start to compare renters insurance rates, it’s important to know all the factors that impact cost. Take a look at the information below to find out how renters insurance cost is determined.

Factors That Determine Renters Insurance Rates

In a perfect world, you’d be able to just get cheap renters insurance and move on with your life. Unfortunately, it’s not that simple. Your location, the type of building you live in, and even your beloved pooch can affect the cost of your renters insurance. Continue reading to learn the most common factors that determine renters insurance rates.

Your Zip Code

You know the saying, “it’s not where you’re from, it’s where you’re at?” Well, although the saying isn’t grammatically correct, it’s certainly true when it comes to the cost of your renters insurance. Know that your city, state, and especially, your zip code, all have an effect on the cost of your insurance. The zip code you live in affects your rate for multiple reasons, but the most notable reason is the safety of the neighborhood. If the area you’re moving to is prone to robbery or theft, your insurance company is more likely to quote you a higher rate. In contrast, if you’ve moving to a safer neighborhood, you can expect lower renters insurance rates.

Type of Residence

What kind of structure does your new rental unit have? Did you decide a duplex was best for you? Maybe a standard apartment was the right choice? Or maybe you decided on a roomy house for rent? Know that your search for apartment insurance, duplex insurance, or rented home insurance will each come with a different price tag. While the type of rental unit you chose was the best option for your living standards, keep in mind that it will affect the price of your renters insurance, too.

Owning Certain Dog Breeds

Believe it or not, renters insurance cost can be determined by the type of dog(s) you own. As discriminatory as it sounds, certain breeds are considered more dangerous than others. Owning a breed of dog that make the list of dangerous types can raise your renters insurance rate or cause you to be denied liability renters insurance coverage from some companies. We’re not saying get rid of your pooch, but be aware that even this can cost you when it comes to your renters insurance.

Your Credit Score

As you probably know, your credit history affects many aspects of your life, and insurance is one of them. Depending on where your credit score falls in the 300 – 850 range, and also what the rest of your credit report looks like, you may end up paying more for renters insurance. Things like your on-time payment history, credit utilization ratio, hard or soft credit inquiries from financing companies, and the age of your credit can all play a role in the cost of your insurance. As you can imagine, you’ll be looking at much more affordable renters insurance if you have a higher credit score. Do your best to stay on top of your credit for the best insurance rates available to you.

Coverage Selections

The type of policy you choose will also determine how much your renters insurance costs. You can choose a minimum coverage policy (with a high up-front premium cost and low monthly rate), or a maximum coverage policy (with a low up-front premium cost and a higher monthly rate), or something in between. For example, you could pay under $100 per year for a minimum policy that would provide coverage of $12,000 (max) for personal property with a $500 deductible and an allowance of $100,000 in liability coverage. If you choose a maximum coverage policy, on the other hand, you might pay anywhere from $250 to $350 per year for $100,000 of liability coverage and $25,000 of personal property coverage.

So, the higher your deductible the more you will have to pay out-of-pocket before your insurance kicks in, but your annual rate will be lower. Conversely, you can expect to pay a higher annual rate if you choose a lower deductible, which results in lower out-of-pocket costs for damages or theft that occur while you’re covered.

Moving can be stressful, but buying renters insurance is fast and easy when you choose Freeway Insurance. Request a free renters insurance quote online or over the phone at (800) 777-5620. We’ll help you find the best coverage at the best price, and the whole process takes just a few minutes.

Ready to Get a Quick Quote?