Insurance Agent, Farmers Insurance, San Francisco Bay Area
Renters Insurance rates are based on two primary factors. #1 - the amount of coverage required for two specific areas, and #2 - the rating of the individual and location. Let's look at #1 first.
Renters Insurance provides coverage for Loss, Theft and Damage for personal property of the insured, and a level of coverage for personal liability as well. The insured selects the coverage based on the amount of personal property they own. They can also choose to select either an Actual Cash Value policy or a Full Contents Replacement policy. The ACV policy will be less expensive, but will pay out less on a claim, as the ACV factors in depreciation of the item. On a Full Contents Replacement policy, the premium is higher, but the policy will usually pay the original purchase price of the item. Of course, both policies will subtract the deductible before paying out a claim.
For #2, the rating factors, the insurance company will look at several items, such as age of the policy owner, how many adults are living in the property, if the insured individuals are smokers or non-smokers, the type of construction of the building, the safety and security features installed (if any) in the residence, any prior claims the insured may have on their record, and a few other items.
The policy premium can be reduced based on the establishment of various discounts, such as Multi-Policy discounts. So the best answer I can give you is to talk to a licensed, professional insurance agent, and always get multiple quotes. Don't just choose the cheapest quote however. Make sure you understand the differences between the underlying policies, how claims are handled and etc. Just because one policy is less expensive than another doesn't mean it is better.
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Renters Insurance provides coverage for Loss, Theft and Damage for personal property of the insured, and a level of coverage for personal liability as well. The insured selects the coverage based on the amount of personal property they own. They can also choose to select either an Actual Cash Value policy or a Full Contents Replacement policy. The ACV policy will be less expensive, but will pay out less on a claim, as the ACV factors in depreciation of the item. On a Full Contents Replacement policy, the premium is higher, but the policy will usually pay the original purchase price of the item. Of course, both policies will subtract the deductible before paying out a claim.
For #2, the rating factors, the insurance company will look at several items, such as age of the policy owner, how many adults are living in the property, if the insured individuals are smokers or non-smokers, the type of construction of the building, the safety and security features installed (if any) in the residence, any prior claims the insured may have on their record, and a few other items.
The policy premium can be reduced based on the establishment of various discounts, such as Multi-Policy discounts. So the best answer I can give you is to talk to a licensed, professional insurance agent, and always get multiple quotes. Don't just choose the cheapest quote however. Make sure you understand the differences between the underlying policies, how claims are handled and etc. Just because one policy is less expensive than another doesn't mean it is better.