Renters insurance is one of the most affordable types of insurance — but the price you pay can still vary based on several important factors. Understanding what influences your renters insurance rate can help you make smarter decisions, compare quotes more effectively, and uncover opportunities to lower your premium.
Here are the major factors insurers consider when determining your renters insurance costs.
Your Location
Where you live plays a significant role in your premium.
• Neighborhood crime rates: Higher theft or vandalism increases costs.
• Weather risks: Areas prone to hurricanes, floods, tornadoes, or wildfires may have higher premiums.
• Local claim trends: High-risk ZIP codes cost more to insure.
• Building proximity to fire services: Closer fire stations and hydrants typically mean lower rates.
Even renters in the same apartment complex may pay slightly different rates based on unit position or building features.
Your Coverage Limits
The more coverage you choose, the higher your premium will be.
• Personal property limit: Higher limits = higher premium.
• Liability coverage: More liability protection increases your rate but provides crucial financial protection.
• Medical payments coverage: Higher limits add to the cost.
• Add-ons: Scheduled jewelry, electronics riders, or water backup coverage raise premiums.
Choosing coverage that fits your lifestyle and belongings helps balance cost and protection.
Your Deductible
Your deductible is the amount you pay before insurance kicks in.
• Lower deductible → higher premium
• Higher deductible → lower premium
• Most renters choose between $250, $500, or $1,000
If you’re comfortable paying a bit more during a claim, raising your deductible can significantly reduce your monthly cost.
Your Claims History
Insurers assess your past claim behavior when calculating your rate.
• Multiple claims within the past few years can increase premiums
• Theft and water damage claims carry the most weight
• Even claims from a previous rental may affect your rate
Try to avoid filing minor claims to keep future costs down.
Your Personal Credit Score (Where Allowed)
Many insurers use credit-based insurance scores in states where it’s permitted.
• Higher credit scores tend to result in lower premiums
• Lower scores may raise the cost
• Not used in every state — residents of California, Maryland, and a few others are exempt
A strong credit profile is one of the most reliable long-term ways to keep your renters insurance affordable.
Building and Property Features
Certain characteristics of the building you live in influence your rate.
• Age of the building — older properties often cost more to insure
• Construction materials — brick buildings may be cheaper than wood-frame
• Fire protection systems — sprinklers, alarms, and fire-resistant materials reduce costs
• Security systems — gated communities and secure-entry buildings earn discounts
• Maintenance level — well-maintained buildings carry fewer risks
Ask your landlord or property manager what safety features are present — you may be eligible for discounts.
Your Personal Belongings
The type and value of the items you own affect your premium.
• Expensive jewelry, art, or electronics require additional riders
• High-value items increase your personal property limit
• Specialty items may require appraisal documentation
Your coverage should always reflect the real value of your belongings.
Additional Coverage Options
Optional endorsements can provide extra protection but will increase your premium.
Common add-ons include:
• Replacement cost coverage (instead of actual cash value)
• Identity theft protection
• Water backup coverage
• Earthquake or flood endorsements
• Scheduled property riders
Review these carefully to avoid unnecessary cost.
Pet Liability
Some insurers consider pets when calculating risk.
• Certain dog breeds can increase your liability premium
• Pets with a bite history may raise costs or limit coverage
• Exotic pets may be excluded entirely
If you have pets, make sure your policy’s liability limits are appropriate.
Whether You Bundle Policies
Bundling renters and auto insurance with the same company often unlocks significant savings.
• Discounts typically range from 10% to 25%
• Bundling simplifies billing and management
• Helps build loyalty discounts over time
Even small policies can contribute to big long-term savings.
Home Safety and Security Measures
Insurers reward safer environments. You may get a discount if your rental includes:
• Smart home devices
• Fire alarms
• Carbon monoxide detectors
• Security cameras or doorbell cameras
• Controlled-access entry
• Fire extinguishers
• Deadbolt locks
Let your insurer know about these features to ensure you get credit for them.
Lifestyle Factors
A few personal factors may also influence your rate.
• Whether you smoke
• Whether you work from home
• Your history of maintaining continuous coverage
These small details don’t impact renters insurance as heavily as home or auto insurance, but they still matter.
How to Lower Your Renters Insurance Rates
Now that you know what determines your premium, here are ways to reduce your cost:
• Raise your deductible
• Remove optional coverages you don’t need
• Maintain good credit (where applicable)
• Avoid filing small claims
• Bundle your renters and auto policies
• Ask for discounts based on safety features
• Compare quotes from multiple insurers
• Update your policy if your belongings change
• Choose an apartment with good security features
Most renters can reduce their premium with just a few small adjustments.