Today’s question is from Piper, who has Austin, TX renters insurance. She heard about the UTA apartment fire, and that got her wondering…
If I file a claim, will my renters insurance be cancelled? They say a claim is more likely if you’ve already had one, so I feel like after a claim I’d need the renters insurance more than I already do because another loss is a little more likely at that point.
That’s a great question, Piper, and many people ask their claims adjusters something similar. A claims adjuster is the wrong person to ask because he or she isn’t the one who quantifies risk and decides if a policy should remain in force.
If I File A Claim, Will My Renters Insurance Be Cancelled?
Can my renters insurance be cancelled for claims? If I file a claim, will I lose my renters insurance? These are common questions, and the answer is generally less concerning than you think!
If I File A Claim, Will My Renters Insurance Be Cancelled?
There are two ways that your insurance policy could end as a result of claims history. The first is cancellation, and that’s unlikely. There are very limited circumstances that allow an insurance company to cancel a policy for claims history or anything else other than misrepresentation and the like during the policy term. Outright cancellation is not usually an insurance carrier’s response to a claim.
If I File A Claim, Will My Renters Insurance Be Non-Renewed?
Instead of cancelling policies once a certain claims threshold is hit, some carriers may elect not to renew a particular policy. That means the policy will continue in force for the remainder of the term but cannot be renewed. This is more common but still not a foregone conclusion. If the policy is non-renewed, this allows you plenty of time to find new coverage and compare policies.
If I File A Claim, Will My Renters Insurance Go Up?
If I File A Claim Will My Renters Insurance Be Cancelled?
Maybe. Likely, even. But let’s keep this in perspective. You’re likely paying around $15 a month for renters insurance. Even if your premium doubled (not the norm), you’d then be paying $30 a month on average. “Doubled” sounds frightening, but we’re still talking about the equivalent of calling out for pizza once a month. Sure, it’s a lot of money relatively, but even a 100% increase on something as inexpensive as renters insurance just isn’t that big of a deal because renters insurance is so inexpensive to begin with.
To learn more about whether filing a claim means losing your policy, contact the renters insurance experts at Effective Coverage at (800)892-4308.