When people hear the word insurance, they usually groan and think of expensive premiums and high deductibles. While some insurance policies can be expensive, renters insurance is relatively affordable. The cost of renters insurance depends highly on a variety of factors, but most policies cost the same amount or even less than a streaming service. On average, renters may pay $15 an our for renters insurance.

This all depends on:

Location 

Certain states and even cities charge different rates for renters insurance. This is in part due to the cost of living and claims history of the area. Cities that experience a higher rate of theft, vandalism or storms will likely charge more for renters insurance due to the elevated risk. It also matters where the rented property is located. Homes or apartments located further away from fire stations and hospitals usually cost more to insure. In some states, insurance agencies won’t insure a renter who is not within a certain distance of a fire station or fire hydrant.

Credit Score 

Your credit score not only affects whether or not you will be approved for an apartment, but the cost of your renters insurance, as well. Credit scores are how insurance agencies determine how reliable a policyholder is when it comes to paying their bills. Renters with a low credit score may find higher rates on their renters insurance policy.

Coverage Limits 

Every renter is different, and thus needs different levels of insurance. On average, most landlords require $100,000 in general liability and $10,000 in property damage coverage, but some renters may need more. Higher limits obviously means higher premiums. Renters can choose to raise their deductible in return for smaller monthly premiums, but this also means paying more before receiving compensation for a claim.

There are also endorsements that renters can add to their policy in order to cover expensive items such as jewelry, furs, art and electronics. Renters in certain areas may choose to add flood or earthquake insurance to their renters insurance policy, as well.

Pets 

Another reason renters insurance premiums may fluctuate are the pets on the policy. Some species cost more to insure than others, such as dogs as opposed to cats. Even beyond species, certain breeds may either be excluded or cost more to insure depending on the insurance agency. Having a pet on the policy can raise your liability needs and thus your insurance rates.