Apartment Insurance With Bad Credit Doesn’t Have To Be Expensive!
Different writing companies use different weighting on various factors that go into the cost of your policy. Credit is not always a major driver of premium. You might find that it only makes a small difference because the residence and safety features are more important to the company than credit.
When you work with Effective Coverage, you gain access to a wide variety of underwriters who all are looking at different factors when they rate policies. That means you’ll get the best price for your particular situation, even if that situation involves less than perfect credit. You don’t have to spend hours shopping and endure the hundreds of phone calls from agents that inevitably follow.
Why Is Credit Used In Renters Insurance?
It’s worth noting why credit is used in rating and underwriting, as well. Contrary to popular belief, it is absolutely not related to the company worrying about you paying your bill. You wanted insurance, you’ll likely pay the bill. The real reason that it’s used is that a few studies have shown a correlation between certain negative credit events and increased claims frequency.
Note that the key word above is “certain negative credit events.” General “bad credit” has no correlation to anything at all, because the number of different ways that one can acquire “bad credit” is nearly infinite. Some people have credit issues after walking away from an underwater mortgage. Some people have never paid a bill in their life. And most people are somewhere in the middle of that. There is no way to correlate “bad credit” with claims or much of anything else, realistically.
That also explains why the scoring models that insurance companies use have nothing to do with the traditional FICO score that you’re used to. The FICO score focuses on your willingness to repay credit that is extended to you. The insurance score models (which widely vary by company) focus on specific events that suggest a strong chance of a future claim. Those disparate goals mean the model has to be entirely different.
Whose Credit Is Used To Price Renters Insurance?
Sometimes, we’ll run into a situation where spouses or partners have wildly different credit. There are many reasons for this, but the real question is whether it matters when you’re buying renters insurance. The answer is, it depends. Some companies use an average of the scores of both insureds when there are two married people on a policy. That provides some benefit in a situation where there’s a difference between the two, while still accounting for those credit events to some degree.
On the other hand, some companies use the credit of the first named insured. If that’s the person with better credit, then the policy is priced accordingly – whether or not there’s also someone named as an insured who might have bad credit. If you’re in a situation like this, just pick up the phone and call Effective Coverage and explain your situation. We can help you get affordable apartment insurance with bad credit for both of you, or just one of you.
What’s The Cost Difference For Apartment Insurance With Bad Credit?
The good news is that renters insurance is cheap to begin with.
The national average price of renters insurance is just $187.00, according to the III. That works out to as little as fifteen dollars per month. The vast majority of families can budget renters insurance easily at those prices.
Additionally, it's important to note that renters are at a significantly higher risk of experiencing loss than homeowners. Renters occupy roughly one third of total housing stock in the country, and yet they are fully fifty percent more likely to experience theft than homeowners, according to the Bureau of Justice Statistics.
It only costs a few dollars a month to protect your family, and this cheap renters insurance is a great way to mitigate the additional risks that come with being a renter.
If the average is fifteen dollars a month, and you end up paying twice the average, that’s only about thirty dollars a month. That’s still very much a manageable amount for most people, and means that apartment insurance with bad credit is not out of reach even if you’ve had some concerns with your credit.
Texas Renters Insurance is priced based on credit, but it’s also priced based on other factors, as well. Those other factors include previous claims, your location, the odds of a claim happening in that location, the amount of coverage you need, and many other things. All of these factors are combined to produce a price in a mathematical equation that accounts for often hundreds of different factors.
To find out what apartment insurance with bad credit – or other odd situations – might cost you, just call (800)892-4308 or click to get covered - whether you need Arlington renters insurance quotes online or coverage anywhere else!
Effective Coverage offers the nation's only completely mobile platform to quote and purchase renters insurance right from your phone or tablet in just one minute. Get an online renters insurance quote today and protect your family.
What's Your Insurance Language?
- Do You Need Renters Insurance ASAP? Check out the fastest way to buy renters insurance online and get covered in just 60 seconds!
- Do You Feel Like Talking About It? Just call Effective Coverage and a renters insurance expert can help you get great coverage in minutes.
- Do You Need Some Time Alone With Your Thoughts? We understand, which is why we created the Texas Guide To Renters Insurance.
- Just Want To Watch A Movie Together? See our Video Texas Renters Insurance Guide!
Image Credit: 401kcalculator.org