What Do Insurance Companies Base Renters Insurance On? 
How a renters policy is rated is no different than how any other homeowners policy is rented . There are several factors that go into the rating mechanism : Where you live - how far to the nearest fire station and fire hydrant The construction of the building - is it a brick building or a frame building -LRB- which do you think burns easier ? -RRB- Safety features - smoke alarms , deadbolt locks , fire/burglar alarms , sprinklers Your personal Property limit -LRB- your stuff -RRB- - the higher the values , the higher the premium Your personal Liability Limit - again , higher limits , higher premium Personal circumstances - age , credit score , claims history Renters insurance is really just a homeowners policy without building coverage . It 's coverage for you and your stuff . The cost of renters insurance is usually much lower than a homeowners policy because a lot of the premium is generated by the cost of the building . Some guidelines to get the right renters coverage . Get a good handle on what it would cost to replace your stuff . A good agent can help or you can go to Allstate 's website and use their tool -LRB- no , I 'm not an Allstate agent , I just like their tool -RRB- . Secondly , choose a higher liability limit . I usually quote at least $ 300,000 but prefer $ 500,000 or more . The cost is very negligible . Be smart , find an agent you can trust and take their advice . If you do have a claim , you 'll be happy you did . 