Need insurance? Factors influencing your renters insurance rate

Shocker: you and your neighbor are paying different rates for renters insurance. You both live on the same side of town, in the same community, in the same sized unit. What gives?

There are quite a few factors that determine your renters insurance rate.

What are you insuring?
How you’ve chosen to spend your money in the past will be a determining factor in how much coverage you request. If you’re a first time renter with hand-me-down furniture and secondhand clothing, you probably won’t need to spend much on coverage because it won’t cost much to replace those things. If you’re a renter who has invested oodles of money into your furniture sets, electronics, and clothing then you’ll want more coverage to help replace the costs of those items in an emergency.

What’s your insurance history?

Unfortunately, renters are expected to pay their insurance every month yet are penalized for making claims. That’s just how insurance works. If you’ve made multiple claims in the past, you are considered to be a risk to the company. You may find that you’re charged a higher premium than a neighbor without previous claims.

How safe is your neighborhood?

If you’re living in an apartment community with upgraded safety features, you could receive a discounted rate. Communities with guarded entries, security systems, sprinkler systems, dead bolt locks and other safety measures are considered more secure and are therefore less costly to ensure.