Analyzing Rental Insurance Claims: Do They Affect Personal Insurance?

As you probably know, a standard rental insurance policy consists of three types of coverages, namely-
• Personal property coverage,
• Liability coverage, and
• Additional living expenses coverage.

Each of these three-cover specific perils that include
• Unexpected damage to your rental property or your personal belongings,
• Accidental third-party bodily injury or property damage, and
• Accommodation costs, if you cannot stay at your rental property because of events already covered, such as a fire.

Still, you should avoid filing regular rental insurance claims as they are likely to affect your other premiums. Read on to learn how rental insurance claims could potentially affect your personal insurance.

1. What Happens When You File Claims Frequently?

When it comes to home renters insurance coverage, your insurer expects you to file claims occasionally. As a rule of thumb, you should avoid filing multiple claims within a 10-year period. It is because if you file multiple claims within 10 years, your insurer will likely take one of the following actions:

• Terminate your rental insurance policy
• Increase your insurance premiums

Since either of the above actions will affect your personal insurance coverage, you should file a claim only when necessary.

2. When Should You Ideally File a Renter’s Claim?

In general, you should only file a claim when the dollar value of the claim far exceeds your deductible. Note that if the dollar value of your claim is below your deductible, your insurer will not only reject your claim and even worse, but may use your claim as a basis to increase your premium. However, even if a claim exceeds your deductible, you should not file a claim if the payout will be lower than the amount you will end up paying in increased premiums.

Frequent rental insurance claims will most probably affect your personal insurance. For assistance with all your coverage needs and questions, contact the experts at Miller Carlisle Insurance Services in Carlisle, Pennsylvania. We will help you find the best auto insurance policy.