What goes into the price of Renters Insurance?

When shopping for a Renters insurance policy that covers your needs, you should be aware of several factors that affect the price insurance companies charge. Some of these factors are out of your control - like the location of the property or the type of residence. However, there are several factors you can control that will help you make the best choice.

Factors that affect the price of Renters insurance:

• Location - Insurance fluctuates from one part of the country to another based on the risk in that area. Unless you research insurance rates before you sign your lease, there's not much you can do about the location of your building.
• Credit and insurance history - In some states, your insurance score could also factor into the cost of insurance. A higher insurance score could result in a lower premium. You can improve your credit history by paying your bills on time and not skipping payments. You should also check your credit report and look for possible errors.
• Pets - If you have a dog, you may be paying more for Renters insurance to cover the cost if your dog happens to bite someone. In addition, certain breeds may be deemed aggressive and would disqualify you from obtaining insurance.
• Amount of coverage - Generally, the more coverage you want, the higher your price will be.
• Deductible - A deductible determines how much money you will have to pay in the event of a claim. The higher your deductible, the more you will have to pay out of pocket in the event of a claim - but you'll also have a lower rate. A lower deductible means that you will have to pay more for insurance because the insurance company will take on more of the claim cost if you have a loss.