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Will Filing a Claim Increase Your Renters Insurance Premium?

A renters insurance policy is a set of coverages meant to protect tenants who live in a house or flat following a covered loss. A typical renters insurance policy helps protect you, your property, and your living arrangements as well. While a standard renters insurance may be relatively inexpensive, there are a few instances in which your renters insurance rates may rise. One such factor is the frequency of claims.

Your insurer is responsible for compensating you when you file a claim. Nonetheless, the more claims you file, the higher risk you pose to the insurer. As a result, they may charge higher rates for the same policy post multiple claims.

  • When Should You File a Claim for Renters Insurance?

    Not all damages or incidents must be filed for a claim. Some incidents are frequently excluded from standard renters insurance policies, including water and flood damage. On the other hand, liability coverage can get affected by any addition of a person or pet in your household. In some cases, you may have difficulty getting specific dogs covered by your renters insurance policy. Huskies, Dobermans, Rottweilers, German Shepherds, and Pit Bulls are some commonly excluded dog breeds.

    However, if the damage is covered by your renters insurance, have it assessed before filing a claim. If the cost of the incident does not exceed your deductible, it is sometimes a good idea not to file a claim. This way, you pay the same amount for coverage without increasing your expenses.

  • Other Factors That Can Affect Your Renters Insurance Premium
    • Credit Score:

      Renters insurance premiums can rise if you have a bad credit score, while good credit can lower them. Paying off debts can help you establish credit.

    • Location:

      The cost of renters’ insurance varies depending on the crime rate in your locality and proximity to a fire station from where you live. Living in a high-crime area can raise your renters insurance rates.

    • Type of Policy:

      The more coverage you require, the more you will have to pay for renters insurance. Policy types can also be dictated by the type of compensation you select. Most renters insurance policies provide actual cash value, which compensates you for lost or damaged items after depreciation, while a replacement cost value policy compensates without taking depreciation into account.

Even if you think you’re doing everything possible to keep your renters insurance premium as low as possible, it can still go up for the reasons mentioned above. However, you can still adjust your deductible to retain some control over your options. Contact our experts at McCarty Insurance Agency today for more information about property insurance.


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