What The Average Cost Of Renters Insurance? 
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 -LRB- if any -RRB- 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 . Do n'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 does n't mean it is better . 