As a renter, getting a renter’s insurance policy is one of the ways you can protect yourself, your visitors, and your personal belongings. Many Everett property managers require their tenants to have renter’s insurance before the day they move into a property. But if the idea of renter’s insurance is new to you, you may not know what to expect. This includes a renter’s insurance coverage, cost, and possible options. This article will go over these topics and more.
What is Renter’s Insurance?
The quick definition of renter’s insurance is an insurance policy that covers personal liabilities, belongings, and sometimes living expenses in case of injury, damage, or loss. Do note that these are items not included in the property owner’s insurance policy. That insurance is for the rental house itself and excludes you or your personal property.
What Does Renter’s Insurance Cover?
The usual losses covered under a renter’s insurance policy include theft, fire, and damage or injury caused by natural disasters. Depending on the type of policy you buy, yours may also cover things like vandalism, losses due to civil disturbances, and damage caused by malfunctioning systems in your rental homes, such as the plumbing, heating, or air conditioning, and so on. If there is a lot of damage, your policy might even pay for the cost of alternative housing, meals, and other living expenses while your rental home is being repaired.
One of the important features of a renter’s insurance policy is that it covers accidental injuries to other people while they are visiting your rental home. In case your visitor either injured themselves or experienced damages to their personal property while at your rental home, renter’s insurance will cover you if a civil or personal injury lawsuit arises. Your insurance could even cover the cost of legal representation to defend yourself in court as well as any damages awarded to the other party, provided these are within your coverage limit.
What’s Required and How Much Does It Cost?
While it is not required by law, many landlords and property owners look for proof of a renter’s insurance policy before they lease their home. However, even if you are not required to have one, you should still get a renter’s insurance policy. These policies are usually reasonably priced and offer extremely valuable protection.
Before you even look around for a policy, make sure you know what the required liability limit is. Many landlords define the required liability limits in the lease and will require tenants to have specific endorsements like floods or earthquakes. Most of the time, these endorsements are based on your location and can be optional or required. Every situation and policy will be different, so it’s good to know what you need.
The type of policy and coverage you choose will affect the cost of your renter’s insurance policy as well as the monthly premiums. According to a recent analysis, the national average cost of renter’s insurance was $14 a month. But most renters pay a monthly premium of between $5 and $30. This is a small price to pay for the protection and peace of mind you get from a renter’s insurance policy.
Shop Your Options
Shop around for different options before settling on an insurance company for your renter’s policy. Most car insurance companies like State Farm, Allstate, or Progressive give you an option to easily add on a renter’s insurance policy. But it won’t hurt to compare a few quotes, including some from newer insurance platforms. That way, you can be assured that you have found affordable coverage for you, your guests, and your belongings that offer the ideal protection you need.
If you are an owner looking for someone to take over the day-to-day tasks of your investment property, contact our team of Everett property managers for more information. Don’t forget to ask about our FREE rental market analysis.
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