How much money was your stuff?

While a home insurance policy premium is built with an emphasis on the house, a renter’s insurance policy gets its price from the amount of stuff in the house.

That isn’t to suggest that ALL the price centers on your personal belongings. Other factors will contribute to it, and we’ve described them below. First, it’s essential to start with the value of your possessions. Figuring out how much your stuff would cost to replace is the most crucial part of determining the price of your renter’s insurance policy.

For you to determine the Replacement Value of your possessions, there are a few steps you will want to take. Remember, we’re talking about replacement value, not its value as a currently used group of items. That isn’t about what you could sell it for right now on Marketplace, Craigslist, or in a garage sale. Replacement cost means: how much would it cost you to replace a brand-new item after being destroyed during a fire? You’ll want to consider some of the following things when determining how much coverage you should purchase:

  • Your closet and dresser – If a fire broke out, your shoes, jackets, sweaters, ties, purses, hats, & accessories could be costly to replace.
  • Your kitchen – Look in your cabinets! Consider all those dishes, utensils, and small appliances.
  • Your electronics – Everyone thinks “My TV,” and you should, don’t forget computers, tablets, gaming systems, and games!
  • Your furniture (and the stuff on them) – Beds, mattresses, chairs, tables, couches, entertainment centers, pillows, blankets, & sheets. These add up too!
  • Your kids – No, not the actual children! Their stuff! Toys and more toys. Don’t forget about all their Hot Wheels, Barbies, & Pokémon!
  • Your other things – We’re all different, but a lot the same. So, remember to include your Target artwork, books, curtains, and other décor.

Once making those considerations, you should arrive at a figure that you can use to go out and shop for a renter’s insurance policy. On average, a single person living in an apartment will insure about $25,000 worth of possessions, and that can change a lot depending on the size of your place or the number of family members living with you.

Other factors affecting your price.

Even though the amount of coverage you choose for your things create the bulk of your insurance price, there are a few other variables to keep in mind. These include the amount of liability insurance you choose to carry, the deductible you settle on, or if you schedule any specific items (jewelry, guns, collectibles).

Is that it?

Almost, but not entirely. There is still the “You” factor to consider. Just like with auto insurance, your credit history will carry weight. Past credit problems can increase the overall rate. That’s not even the most significant item, though. What’s most important is your past claims history. Insurance carriers will go back five years to determine if you’ve had to file a claim on any property insurance policy you have had. Prior claims can drastically affect the premium. More than one claim in the past five years can diminish the number of carriers willing to offer a policy.

Did you hear you can get a free policy?

That is a question we have received! The funny part about it is that, in a way, it’s true. It’s not unusual for us to pair your car and renter’s insurance policies with the same carrier. Doing so creates what’s called a multi-policy discount. Sometimes the discount on the auto policy is so significant that it covers the entire price of the renter’s policy! That won’t always be the case, but it’s happened enough to mention it.

What’s my next step?

The Horan Companies team of insurance professionals is here to help guide you through those insurance decisions. Call or contact us, and remember, we will not spam you or sell your information. To make it easy, we’ve added a short inquiry form below. Give that a quick fill-in, and one of our insurance pros will reach out. We’ve got you.

Let’s discuss the price of your renter’s insurance.

One of our insurance advisors will reach out to you to review your information and present you with the appropriate insurance solution. There’s no obligation, just good-old-fashioned advice.
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Horan Companies offers comprehensive renter’s insurance in New York State, including: Baldwinsville, Syracuse, Onondaga County, Liverpool, Fulton and Camillus, NY.