When searching for an apartment to rent, you will likely come across requirements to purchase renters insurance. Renters insurance covers your property from damage and liability claims if you cause bodily injury or property damage to someone else.
There are many reasons you may be denied renters insurance, some of which are out of your control.
Location
You may have difficulty finding a renters insurance policy, depending on where you live. If you live in an area that is far from a fire station, insurance agencies may refuse to insure you. The same goes for renters who are too far from water supplies, fire hydrants and fire prevention practices.
Construction
Sometimes it’s the rented property itself that can prevent you from being approved for renters insurance. If you have a landlord who does not keep up regular maintenance, then an insurer may refuse to give you a policy.
When searching for an apartment, make sure to check ratings and do an inspection of the potential home to look for any possible safety issues that might cause issues later down the road.
Even if you are approved for a policy, a future inspection could have your policy cancelled.
Credit Score and Claims
As with other insurance policies, your credit score and past claims will be considered during the calculation of your renters insurance policy. Not only can a bad credit score cause you to have higher premiums, but it can also cause you to be denied coverage. This is because credit scores are seen as examples of your reliability. Insurance companies want to be confident that you will pay your premiums in a timely manner.
You may also struggle getting renters insurance if you have a long list of claims. If you’ve previously filed claims in the past, insurers view you as more likely to file another claim with them. This won’t necessarily keep you from getting a policy, but it will make your premiums more expensive. Before filing a claim on your policy, keep in mind that your rates may increase. Consider the cost of repairs compared to your deductible. If the cost of repairing damage is less than the price of your deductible, it may be more cost-effective to repair the damage out of pocket instead of filing a claim. On the other hand, any damage or loss that costs more to fix than the cost of your deductible should be filed with your insurer.
What Do I Do If I’m Denied Renters Insurance?
Being denied renters insurance can be stressful. You need it for most apartments these days, and not having it can put you in a precarious position. The good news is that if you’re approved for an apartment based on your credit, you’ll likely be approved for renters insurance based on your credit. Before you move, however, make sure to check renters insurance quotes for the area. You will learn quickly whether the area is insurable or not. Make sure the apartment is near a fire station and water source — and that it has plenty of safety measures in place.
Some apartments offer renters insurance through them. This insurance will likely be more expensive than purchasing a policy through your personal insurance company, but you may have an easier time being insured once you’re already approved for an apartment.
How Much is Renters Insurance?
Renters insurance is relatively inexpensive, at an average of $15 a month. This number varies depending on your insurer, location and credit score.