Accidents happen
Renters insurance is often overlooked or not considered because many people think insurance is necessary only for homeowners or auto owners. Westfieldinsurance.com lists several reasons why every renter should carry this type of insurance. One reason is to cover personal belongings from damage or theft; another is to pay for medical expenses in the event someone is injured in your rental property.
Variables
Variables considered by an insurance company when calculating a premium for a policy include the coverage amounts desired, the number of people living in the unit, age and location of the building, whether a dog is present and the type of dog, and the amount of the deductible applied.
Coverages
In addition to covering personal belongings, rental insurance may cover liability for injuries to visitors and loss of use. Loss of use would include the cost to rent another location or for the cost of meals.
Personal History
An insurance company considering you for renters insurance will evaluate your credit rating. Tenants with recent bankruptcies or delinquent accounts are rated at a higher risk level and are likely to pay a higher premium. Past claim frequency and claim amounts are also a consideration.
Tips
Under-insuring your possessions could increase your losses in the event you have to file a claim, but over-insuring for coverages you don't need can increase your premiums.
Considerations
Insurance policies can be voided if it is discovered that facts were misrepresented in your application. Always provide current and accurate information to your agent.
Tags: increase your, insurance company, personal belongings