One of the best ways to protect not only yourself as a renter, but your visitors and personal belongings as well is to buy a renter’s insurance policy. Most Stockbridge property managers require tenants to have renter’s insurance before moving-in day. But if the idea of renter’s insurance is new to you, you may not know what to expect. For example, what exactly does renter’s insurance cover, how much would it cost, and what are the different options available? This article will take you through these topics.
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. You have to remember that these are not covered under the property owner’s insurance policy. That policy covers the rental house itself but does not insure you or your personal property.
What Does Renter’s Insurance Cover?
Typically, renter’s insurance policies cover losses like theft, fire, and damage or injury due to 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 the extent of the damage is bad enough, your policy could even pay for the cost of alternative housing, meals, and other living expenses while your rental home is being repaired.
One great feature of renter’s insurance policies is its coverage of accidental injuries to other people while visiting your rental home. For example, if your visitor either injured themselves or experienced damage to their personal property while at your rental home, renter’s insurance will cover you in the event of a civil or personal injury lawsuit. Some insurance options even cover the cost of the legal representation you’ll need to help you defend yourself in court as well as any damages awarded to the other party as long as 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. And even if it is not a requirement, a renter’s insurance policy is something you should have. Policies don’t usually cost much but they offer extremely valuable protection.
Before shopping around, you should know the required liability limit of your policy. Most landlords indicate the required liability limits in their lease and often require tenants to have specific endorsements like floods or earthquakes. These endorsements are usually based on where your location is and may be optional or required. Each situation and policy will be different, so you must know what you need.
The type of policy and coverage you choose will determine the cost of your renter’s insurance policy as well as 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 very small price to pay in exchange for the kind of protection and peace of mind a renter’s insurance policy offers.
Shop Your Options
Given the many options and rates in the market, it is good to shop around before deciding on an insurance company for your renter’s policy. If you already have car insurance with a big company such as State Farm, Allstate, or Progressive, you can ask how to add on a renter’s insurance policy. It also wouldn’t hurt to get quotes from even newer insurance platforms before choosing one. That way, you will be assured that you got the most affordable coverage for you, your guests, and your belongings that offer the 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 Stockbridge property managers for more information. Don’t forget to ask about our FREE rental market analysis.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
