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Why is My Renters Insurance - Atlanta, GA So Expensive?

When you are renting an apartment or home, the last thing you want to do is spend more money on insurance. Unfortunately, there are times where you may find yourself paying more than you expected simply to insure your belongings.

There are many possible reasons for this and it goes back to the factors that influence your renters insurance rates in the first place.

You Moved

If you moved into a new apartment complex recently, you could see a rise in your renters insurance rates. This is because renters insurance is partially based on your location, such as your proximity to a fire station, the crime rate of the area, history of storms or natural disasters in the area, etc. If you move to an area with a higher crime rate or a history of natural disasters, you could see a rise in your renters insurance rates. On the other hand, moving to an area with a lower crime rate or closer to a fire station can actually save you money on renters insurance.

Your apartment complex and unit also matter. Does your apartment have a security system? Does it have a gate? Does your unit have updated fire alarms? All of these can factor into how much you pay for renters insurance. Living in a gated area can often save you money by reducing the risk of theft or vandalism.

Your Credit Took a Hit

Just like your credit score can affect your ability to rent a space, it can also affect how much your renters insurance costs. Insurance providers generally view your credit score as an example of how reliable you will be in paying your insurance premiums in full and on time. The lower your credit score, the more you may pay for insurance. If your credit takes a hit due to a missed payment or loan, you could see a rise not only in your renters insurance rates, but your other insurance policies as well, such as auto insurance.

You can build credit by paying off loans and debts. It can also help to set up automatic payments for your bills so that you never miss a payment.

New Coverage Limits

When you change how much coverage or what type of coverage you have, you will often see a change in your renters insurance rates. For example, say you get engaged and wish to insure your engagement ring. Expensive jewelry often as limited coverage under a basic renters insurance policy, so you choose to add a policy floater in order to cover the total cost of the ring in case something happens to it. In this case, your renters insurance rates will likely go up because you increased the amount of coverage.

If you are considering changing your renters insurance coverage limits, be sure to speak with your insurance agent about the best way to do so and how it may affect your renters insurance premiums.
Changes with Your Insurer

Sometimes, changes in your rates have nothing to do with what you insure or where you live. Changes within the insurance company itself can often cause changes in your renters insurance rates. This is why it is a good idea to ask about any seemingly random changes in your renters insurance premiums and compare quotes with other insurers if you believe that you are paying too much. Some insurers will charge you hefty prices if you have a bad credit score while others specialize in high risk insureds.

Ask about discounts and other ways you can save money.

Deductible

Your renters insurance deductible is how much you must pay out of pocket before receiving compensation for a renters insurance claim. For example, say a fire breaks out in your apartment and causes $4,000 in damage. Your deductible is $500. This means you must pay $500 toward repairs before receiving compensation for the remaining $3,500.

Choosing a higher deductible can often save you money on monthly premiums, but it also means paying more out of pocket after an accident. Sometimes a higher deductible is worth it while other times, you may simply want to pay higher premiums to avoid an expensive out of pocket cost.  

No two renters are the same, so be sure to speak with your insurance agent and tailor a policy suited with the coverage you need at an affordable price. If you discover that you are paying too much for renters insurance, be sure to compare quotes with other insurers and ask about ways to save money.

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