 TITLE: Does Renters Insurance Require a Credit Check? CONTENT: Many factors influence your renters insurance premiums, including the insurer you choose, where you live, the amount of coverage you want and your credit score. However, the credit score that insurance companies check is not the standard FICO® Score☉ or VantageScore® you may already be familiar with.\nWhen you apply for a credit card or loan, lenders want to know that you'll be able to pay the money you owe, so they check your credit score. When you apply for insurance, insurers' primary concern is how big of a coverage risk you pose. That's why insurance companies in most states use specialized credit-based insurance scores. Credit-based insurance scores take your credit history into account to try to shed some light on how statistically likely you are to file a claim. Not all states allow these scores (California and Maryland, for example); check with your state insurance department to see if yours does.\nHaving a higher credit-based insurance score generally qualifies you for lower insurance premiums. You can't check your credit-based insurance score, but these scores are generally based on similar data as your regular credit score. For example, LexisNexis® Risk Solutions' Attract™ and FICO credit-based insurance scores rise and fall based on things such as bill payment history, credit utilization and records of defaults and collections—all factors that affect your consumer credit score. If you have a good credit score in general, you can probably feel confident that your credit-based insurance score is good, too.\nYour credit-based insurance score isn't the only factor in the cost of your premiums, however. When determining your personal risk for renters insurance and the cost of your policy, insurers also consider:\n*   **The property**: Do you live in an area that has a high crime rate or is subject to forest fires or tornadoes? High-risk locations typically mean higher premiums. However, safety measures such as smoke alarms or security guards can lower your costs.\n*   **Your relationship with the company**: If you already have one type of insurance with a company, you'll generally get a multipolicy discount when you buy renters insurance.\n*   **The amount and type of coverage**: The more coverage you need, the higher your premiums are. You'll also pay more if you need supplemental insurance for a high-end computer, antiques or other expensive possessions. Replacement cost coverage, which pays to replace your belongings with equivalent new items, costs more than actual cash value insurance, which pays out the depreciated value of your belongings today.\n*   **Your deductible**: You can lower your premiums by opting for a higher deductible; just be sure you can handle paying it in the event of a claim. END