What People Are Saying
Thanks for making it easy to find the cheapest renters insurance. Knowing our stuff is always protected gives me peace of mind.
Matt and Bethany, Charleston SC
AVERAGE RENTERS INSURANCE
Average renters insurance prices can depend on many factors. The cost of a policy for your home varies based on the home's location. Some areas are more expensive than others. Within this schism are even further divisions in price. Another variable is the level of coverage sought by the policy holder. There are default plans but many people choose to customize their coverage, which can drive prices higher. Finally, the characteristics of the renter and the house or apartment being insured come into play when it comes to the premium. Both play important roles that might not be all that intuitive but can be easily explained in a general way. These three areas each play significant roles in shaping the average renters insurance price you might expect to pay as a consumer.
Price Dependent upon Location
The average cost of renters insurance can vary tremendously based on geographical area. One prominent example can be found in statistics broken down by state. The more expensive states tend to be twice as expensive as the cheapest ones. A few things can explain this state by state disparity. For example, state regulations on this insurance form sometimes vary, driving up prices. But generally speaking, costs do not just skyrocket because of some artificial boundary. There are other factors driving average renters insurance prices that help make sense of the state differences when we work backwards from them.
Some states are more highly populated than others, with a higher population density as well. States like California and Texas have some of the biggest cities in the country as well as high overall populations. It is no surprise that some of these states also have the highest average rates for renters insurance. With higher population and higher population density come more opportunities for claims due to theft, fire and a host of other causes.
Within state borders, great disparities can also be found. Someone living in a townhouse in a large city can expect to pay higher average renters insurance premiums than another renter just outside of town renting a condo in a semi rural area. Again, the same state and even the same county or zip code can produce widely differing policy prices. This is true in high population states as well as some of the states that are the cheapest on average to begin with. Renters who live in the most heavily populated states do tend to see more of a range in cost, however.
Level of Coverage Affects Cost
Geographical boundaries are an important variable driving these prices for average renters insurance. But the state by state comparisons typically utilize data from very average default level coverage. Yet not every renter has this default level of protection. Some opt for more coverage, either from higher limits or from endorsements for valuables or other riders. These costs have a great impact on the overall cost of a policy.
The level of coverage you take on tremendously affects the premium you'll pay for average renters insurance for your condominium or loft. Some renters require much higher limits for their personal property plan, because they own far too much to protect it all with a default policy. Others add expensive endorsements like flood insurance or jewelry coverage. These riders can cost more than the main policy itself, so their addition skews the average renters insurance price completely. But to get a full and realistic sense of what you might pay as a prospective customer, you have to take these options into account, at least if you are interested in adding them to your own plan.
The Renter and the Home
And that is why as the renter, you have a great impact on the price of your policy. The choices you make for coverage make a big difference. So does your credit score and your own claims history. A family with serious credit issues may pay more for coverage than they would without those problems, because the insurance provider could regard them as a higher risk to insure. A student in an apartment who has made multiple claims in the past will likely face some kind of surcharge for frequent claims, because he has already established a pattern as someone likely to file a claim in the past.
Likewise, your home itself may show above average tendencies when it comes to renters insurance claims. Average renters insurance premiums are influenced by the claim history of the rented home where the insured renter lives. A senior citizen who has just moved into a rented condo may pay more even though she had nothing to do with these past claims. If an address shows a high claims average, new occupying renters will pay a higher price. Average renters insurance prices are complex to determine.