Renting provides a sense of freedom, but it doesn't mean that there aren't any risks. From theft to fires, replacing all of your belongings if an incident occurs is a significant cost. Thankfully, renters insurance offers valuable protection. Here's a closer look at what plays into the cost of your policy.

What Factors Affect Your Renters insurance Premium?

1. Personal Property Value

As a tenant, your insurance policy is focused on your belongings and not the structure itself. While that results in lower rates than a standard homeowner's plan, renter's policy rates vary dramatically based on the total replacement cost of your possessions. If you own high-cost items, like jewelry and electronics, then you can expect a higher premium than a base policy because of the extended financial protections.

2. Location

In neighborhoods with high crime rates, there's a higher risk of claims for theft and burglary. For that reason, living in such a location results in higher premiums. Additionally, the features of the building itself are considered in the underwriting process. Security, fire alarms, and sprinkler systems can help offset the risks of a high-crime area, so consider these qualities when choosing a place to live.

3. Deductible Amount

Renters insurance policies typically offer a deductible range between $500 and $1,000. Higher deductibles cut down on what provider's portion of the claim, so choosing one usually results in a lower premium. However, it's important to remember that the deductible is an out-of-pocket cost, so be sure to choose an amount that works with your budget to avoid a financial burden.

4. Liability Coverage

Basic renters insurance will cover the cost of replacing your possessions, but you also want to include liability coverage in the plan. Liability insurance protects you in case someone is injured in your home or if you damage someone else’s property—for instance, your son breaks the neighbor’s window. If you entertain often, you may want to increase your coverage, which will increase your monthly rate. 

Want to save on your renters insurance policy? Learn more about your options with the assistance of Superior Insurance in Durham & Wake County, NC. The local independent agency works with multiple reputable carriers to help clients find the most affordable rate for their unique needs. Find your ideal policy today by requesting an insurance quote online or at (919) 224-8034.