5 Factors That May Impact the Price of Renter’s Insurance
Updated: Aug 23, 2018
Location is a factor that contributes to the price of a renter’s insurance policy. Renter's insurance will be more affordable in areas that are safe or with low crime activity as it represents lower levels of risk for the insured and to the insurance company.
2. Credit and insurance score
Depending on the state you reside, insurance companies may consider your credit score and insurance score as factors to calculate your renter’s insurance premium. The higher your credit score, the less you will likely pay for a renter’s insurance policy.
3. Type of residence
Are you renting a condo, a duplex, a single-family home, or an apartment? The type of structure of the property you decide to rent may also be a factor that affects what you pay for renter’s insurance. Data shows that theft and other types of crime are less common in apartment buildings with multiple units.
4. Presence of dogs in the home
Pit Bulls, Rottweilers, and Dobermans are some of the breeds that may disqualify you from acquiring a renter’s insurance policy. The reason? Risk. The presence of a dog in your home may represent risks to some insurance companies, as the likelihood for a dog to bite someone inside or outside of your dwelling could be a possibility.
5. Coverage selections
Renter's insurance policies vary from one person to another. Depending on your needs, you may select higher or lower limits of liability applied to the coverages you obtain for your policy. Please keep in mind that additional coverages and deductibles are also factors that will determine how much you pay for renter’s insurance.
Considering the 5 factors that may impact the price of renter’s insurance can help you understand why renter’s insurance is more affordable in some areas. We suggest that before purchasing a renter’s insurance policy, you review the coverages, the deductibles and consider selecting additional coverages to your policy.