What is a renters insurance quote?

A renters insurance quote is a personalized estimate of the cost of your policy. It is determined by factors such as your location, the value of your personal belongings, and whether or not your home has fire alarms or other security features.

Because each insurance company calculates rates differently, it's worth shopping around to compare renters insurance quotes and find the best deal.

How to get renters insurance quotes

When you're ready to purchase renters insurance, you have several options. Whatever you choose, get at least three quotes — all with the same coverage limits and deductibles — so you can compare which company is offering the best price for your needs.

Shop for renters insurance quotes online or by phone

Online renters insurance quotes are available from a variety of insurers. Some companies let you buy a policy online, while others send you to an agent to finalize the details over the phone before you buy.

Renters insurance is easier to find online because it is a relatively simple product compared to other types of insurance. However, if you prefer, most companies will walk you through the entire process over the phone.

Work with a captive insurance agent

When looking for a renters insurance estimate, another option is to contact a captive insurance agent who works for a single company such as Allstate, State Farm, or Farmers Insurance. Because they only work with one insurer, these agents are likely to be well-versed in that company's policies.

Although some captive agents are paid a salary, the majority of their income is typically derived from commissions and sales bonuses, which can serve as an incentive to sell more expensive policies. Captive agents, unlike independent agents, cannot provide you with quotes from multiple insurance companies.

Contact an independent insurance agent or broker

Consider working with an independent agent or broker if you want to discuss your renters insurance options without committing to a single company.

Independent agents and brokers both work with multiple insurers, allowing them to cast a wider net when providing quotes. One significant distinction is that agents work on behalf of insurance companies, whereas brokers work on your behalf. Many agents have the ability to “bind” insurance policies, which means they can put coverage in place even before the formal policy is issued; brokers, on the other hand, apply for policies on your behalf.

Both agents and brokers are compensated on a commission basis, though brokers may charge additional fees. Before working with an agent or broker, inquire about the commissions and fees that will be charged for their services.

What information do you need to get a renters insurance quote?

Before you begin looking for renters insurance quotes online or over the phone, you should have the following information on hand:

• Personal information in the simplest form (name, date of birth, marital status and Social Security number).
• The rental address and the start date of your coverage.
• The estimated worth of your personal belongings (use our calculator below to help you estimate this).
• The number of people who share your home.
• Details about your rental, such as its proximity to a fire station and the presence of safety features such as deadbolt locks or burglar alarms.
• Previous insurance coverage and claims (be truthful — the insurer will find out).

What goes into a renters insurance quote?

There are numerous factors that can influence your renters insurance quote, and each insurance company weighs them differently. The following are the most common factors:

Where you reside. If you live in an area of the country prone to hurricanes, wildfires, or other natural disasters, your premium will most likely be higher. It is also important to consider your surroundings: Tenants who live in high-crime areas typically pay more for renters insurance.

Protection from local fires. If you live near a fire station or hydrant, you will most likely pay less for renters insurance than someone who lives in a remote area.

Protective features. Is there a security guard at your apartment complex? Is your home protected by burglar alarms, sprinklers, smoke detectors, or other safeguards? Because they reduce the likelihood of fire or theft, all of these could result in premium discounts.

Your credit. Because studies have shown a link between poor credit and a higher rate of claims, people with low credit scores pay more for renters insurance in most states.

Credit cannot be used to set the price of homeowners, renters, condo, or mobile home insurance in California, Maryland, Massachusetts, or Washington.

Your coverage limits. The amount of property you would have to replace in the event of a disaster is one of the most important factors in any renters insurance quote. Insuring a one-bedroom apartment furnished with a few self-assembled pieces will be less expensive than insuring a large rental home filled with antiques and high-tech electronics. A higher liability limit may also contribute to a higher premium.

Your pet. Your dog adds a lot to your household — and it may raise your renters insurance premium slightly. If your dog bites someone outside your household, the liability portion of your renters policy should cover you, but large dogs or certain breeds may incur a slightly higher premium — or not be covered at all.

Your home-based enterprise. If you work from home, you may need to add a rider to your renters policy or purchase a separate commercial policy to cover your office equipment and potential liability for a work-related injury in your home.

Your previous claims. If you've ever filed a claim, even if it was with a different company, your insurer may view you as a higher risk and charge you more.

Choosing the right amount of coverage

A typical renters insurance policy will typically include three types of coverage. Here's how much you should spend.

Personal property insurance

This coverage will pay for the replacement of your belongings if they are stolen or destroyed as a result of a fire, hurricane, or other natural disaster. You'll need to know the approximate value of your belongings in order to choose the appropriate amount of coverage. The calculator below can provide you with a rough estimate. To ensure that you are fully reimbursed, round up to the next available coverage level.

Additional living expenses

This coverage, also known as "loss of use," will pay out if you need to live somewhere else while your home is being repaired following a covered claim. This includes the cost of hotels, restaurant meals, and other out-of-pocket expenses above and beyond the cost of living at home. The cost of loss of use coverage can be calculated as a percentage of your personal property limit or as a fixed amount (normally a few thousand dollars).

Liability coverage

Renters liability insurance covers expenses such as medical bills for a visitor who trips and falls on your rug, legal fees if you are sued, and repair costs if your child breaks a neighbor's window.

Before deciding on your liability limit — which typically ranges from $100,000 to $500,000 — add up the total value of your assets, including vehicles and savings, and make sure you purchase enough liability to cover them so you don't lose them in the event of a lawsuit.

How to get the cheapest renters insurance quote possible

According to InsuredCircle rate analysis, the average renters insurance cost is $168 per year, or about $14 per month, but you may be able to get a lower rate if you shop around. Even if you find a company you like, it's a good idea to compare rates once a year and whenever you move to ensure you're not missing out on a better deal.

Here are a few more ways to save money on renters insurance:

Raise your deductible. Your annual premium will be reduced if you are willing to pay a little more out of pocket when filing a claim. (Just be sure to have the deductible amount on hand or easily accessible.)

Improve your credit score. Paying your bills on time and reducing your debt can help you build credit and get a lower renters insurance rate.

Bundle insurance policies. If you insure both your car and your rental with the same company, you will frequently receive a discount.

Include safety features. Install a burglar alarm or request that your landlord install a deadbolt on your front door. These features will not only keep you safe, but they may also save you money on your renters insurance.

Drop unnecessary coverage. Review your policy documents on a regular basis to ensure that your coverage still meets your needs. For example, if you purchased additional insurance for a musical instrument that you no longer own, you can cancel it.