Felons know the challenges they face in finding someplace to live. Rental opportunities are difficult to find, although not impossible.
For those felons who are able to find a place to live, that is an opportunity to feel good. There are so many discouraging situations now that they are living as someone with the mark of a felon.
An important aspect of renting a place to live is to protect their possessions.
This blog post will cover the issue of renters insurance.
- What is Renters Insurance?
- Applying for Renters Insurance
- Credit Report
- Finding an Insurance Company
- Supporting a Felon in Getting Renters Insurance
What is Renters Insurance?
Renters insurance is an insurance policy that protects residents’ property from losses due to damage to property or injury to individuals on their property.
These losses may be due to a variety of events:
- Fire or lightning, snow, ice, hail or wind damage
- Falling objects
- Water damage
Renters insurance typically covers bodily injury and medical payments for personal injury.
While it may seem like an unnecessary expense, having renters insurance can provide coverage and peace of mind while living in a rental unit.
Felons may feel as if they don’t have many valuable personal possessions.
But, estimates place the typical value of personal property in a two-bedroom apartment as high as $40,000. This is the replacement cost estimate for those goods.
Living with a conviction is challenging enough already. Suffering losses to personal items would only add to the financial burden.
Applying for Renters Insurance
Most insurance companies offer some type of renters insurance.
Applying for coverage is relatively easy. Most insurance applications ask for basic information, including:
- Name, address, and phone number
- Social Security Number
- Marital status
- Employment status
There may also be questions about the number of persons living in the unit and any business conducted there.
Having the renter’s Social Security Number allows the insurance company to check on whether previous claims have been filed. Also, it allows the insurance company to do a credit check.
The typical credit report contains several categories of information:
- Identifying information – This includes Social Security Number, birth date, and employment status.
- Trade Lines – These are the credit accounts, including the type of account, date account opened, credit limit, account balance, and payment history
- Credit Inquiries – This is a list of everyone who has accessed this credit report in the past two years.
- Public Record and Collections – This is public record information from state and county courts and information on bankruptcies foreclosures, liens, and judgments.
The credit area is one that many felons have difficulty with and typically is the main reason to be denied renters insurance coverage.
Having been in prison, being unemployed, and being unable to find a job puts most felons in a precarious situation. Their financial history may include bankruptcy because of the inability to meet their obligations, especially during incarceration.
But, remember that if felons are seriously considering renters insurance that means they have likely found a place to rent. This is a huge step in the battle to get renters insurance.
Finding an Insurance Company
If felons already have another form of insurance, such as auto insurance, this would be the insurance company to begin with in looking for renters insurance.
While the first insurance company that felons approach may not be the one, there are other insurance companies available.
Felons must remember that it is essential that they are honest about their criminal record when applying for renters insurance. If not, they can easily put themselves in the position of being denied coverage.
Not every company they contact may accept them.
Being denied coverage by one company makes it even more difficult to find renters insurance. They may have to keep searching, so they shouldn’t make it more difficult by lying on an application.
Not only that, but if they lie and are turned down by one company when they do find an insurance company that will accept them, they run the risk of paying an even higher premium than the first company quoted them.
So, they should give themselves the best chance from the start.
It is important not to give up. Getting that job with a felony is not easy. The Free Guide to Getting Employment has success stories.
In making their case, felons may want to have their record expunged to wipe it out and increase their chances of qualifying for renters insurance.
Persistence will pay off. Just stick to it and keep trying.
Supporting a Felon in Getting Renters Insurance
For families of felons wanting to get renters insurance, stand by them. All of you have been through extremely difficult times already. Don’t let your loved one give up.
Be square with them and let them know the importance of not lying on an insurance application. After all, not being honest put them in the situation they are in now.
Remind them of how proud they will be to live an honest life, find a place to rent, and be able to get their property insured. That will provide them the opportunity to establish more responsibility again.
They will not only be able to rent living quarters, but they will be able to protect their property.
So what do you think about this blog post about getting renters insurance with a felony? Have you or someone you know gotten renters insurance after a felony conviction? What was that experience like, and how were they successful? Please tell us in the comments below.