6. what factors determine your renters insurance

Renters insurance. You’ve heard you need it to protect your valuable belongings. So you jump on the first policy you see. Except, you have no idea how it’s calculated and whether you’re getting a good deal or not. We share your frustration. At CoverHound, we don’t believe in nodding blindly at rates insurers give you. Instead, compare affordable renters insurance quotes from all the top insurance companies.

But before you input all your information into our quote generator, you should be aware of all the factors that determine your premium cost. Let’s check out the most common factors that determine renters insurance below.

Rental Location

Unless you’re researching renters insurance before you’ve found an apartment, there’s not much you can do about the location your building is in. If you’re renting in tornado alley, on a fault line (hello San Francisco), or in a questionable neighborhood, you’ll have higher premiums at these locations as they’re considered to have a higher probability for claims.

Building and Unit Size

Are you renting an apartment in a building with many units? Or is it a small building with only a few units? Whether you think it makes sense or not, the larger the building and the amount of units in that building, the lower your premium cost will be.

How Much (Valuable) Stuff Do You Have?

If you own a nice guitar, expensive laptop or a bunch of paintings, you might want to up your coverage and liability limit to protect yourself in the case of theft or disaster. If you don’t own that many valuable things, your premium should be much lower because you won’t require high-value coverage.


Like the location, and number of units in your building, your premium will also be cheaper if your building has good security features or front desk security. If you’re in a higher crime area and your building doesn’t have a security system, you should talk your landlord into the investment—it’ll reduce your premium and possibly attract more people to rent in the building.

Fire Prevention

Hopefully the place you're renting has smoke detectors and overhead sprinklers for general safety reasons, but if it doesn’t, you could be in for a premium spike. Take it upon yourself to add a smoke detector if there isn’t already one. It’s an easy fix and will save you a small amount monthly.


The better credit you have, the lower the rates you’ll get. Why? Because if your credit’s good, then your insurer will be more confident in you being able to pay your premium each month.


A deductible determines how much money you’ll have to pay out of pocket before your claim coverage kicks in. The deductible you choose directly affects a renter’s insurance premium. Choose a lower deductible and get a higher premium, choose a higher deductible and get a lower premium.

Bundle Policies

Do you have automotive insurance? See if your existing insurer can offer you a good renters rate in exchange for more of your business. It could save you between 5 and 15 percent to bundle policies. Check with your current insurer to see what kind of discount they can give. But make sure to get those comparison rates before agreeing to a policy! It might take a little more time, but you’ll be saving money in the long run.

Know What You Can, and Cannot Control

There are some things you can control when looking into renters insurance, such as your deductible, what possessions you want to insure, the building you decide to live in, the neighborhood and whether or not it has a security system or lobby security. It is also helpful to understand who’s offering the policy. If you don’t shop around for providers, then you’re asking to get price gouged.

Don’t leave hundreds on the table in premium costs a year. Stick with CoverHound’s simple insurance comparison platform for all your renters, home, auto and motorcycle insurance needs!

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