Factors that Affect Renters Insurance Premiums in Pennsylvania
For each type of coverage, your renters policy will have a coverage limit. For example, you might be covered for personal property damage up to $20,000 and additional living expenses up to $5,000. Your insurance company won’t pay more than your coverage limit, so it’s important to choose the right coverage level. Raising your coverage level will raise your premium.
It’s also important to note that there are two types of policies: replacement cost policies and actual cash value policies. Replacement cost policies tend to cost more because the payouts reimburse you for the cost to replace each item up to your limit, rather than the actual cash value of the item after depreciation.
Deductibles for renters insurance typically range from $500 to $2,000, but you can find $0 deductible renters policies as well. The lower your deductible, the higher your premium will be, and vice versa. But you should never choose a deductible that’s higher than what you have saved in an emergency fund since you’ll be on the hook for that amount if something happens to your home or belongings.
Value of Property
Most renters policies have a total limit for your personal property coverage and a dollar limit for each category of item. That’s the amount they’ll pay for your belongings if they are stolen or damaged by a covered loss, such as fire or vandalism. For example, your portable electronics may only be covered up to $1,000. If you have more expensive valuables, like fine jewelry, musical instruments, or art, you may want to purchase additional coverage for those items, which will increase your premium. You may also be able to get additional coverage, such as identity theft coverage or earthquake coverage, which would likewise raise your premium.
Residence Type and Location
If you rent a single-family home, you’ll likely get a lower premium than if you rented an apartment, where your neighbors’ behavior is a factor in your risk. But every residence type impacts your premium differently; you might pay more for renting a mobile home because of the greater risk of storm damage.
Your address will also play a role in your premium costs since high-crime areas are considered riskier. For example, you’ll likely pay more for renters insurance in Philadelphia than you would in Pittsburgh or Erie.
Some renters insurance providers will use your insurance-based credit score to determine your premium amount. This score is based on many of the same factors as your traditional FICO score, such as your payment history and credit utilization ratio. If you can improve these measures by paying down debt before applying for a renters insurance policy, you might be able to get a lower rate.
Having an animal in your home can increase your risk of liability insurance claims, so your renters insurance company will probably ask you if you have a pet and raise your premium accordingly. If you do have a pet, you should make sure to purchase enough liability protection. Note that some renters insurance companies may be unwilling to cover high-risk breeds.
Pennsylvania -Specific Factors
The average cost of renters insurance in Pennsylvania is $158 per year, or roughly $13 dollars a month. That makes renters insurance substantially less expensive than in other states like New York, California, or Texas. That’s probably at least in part because natural disasters like hurricanes or earthquakes are less common in Pennsylvania than in most other states.
Average Annual Cost of Renters Insurance by State