As a renter, one of the most necessary things you can actually do to protect yourself, your visitors, and your personal belongings is to buy a renter’s insurance policy. Indeed, numerous Rigby property managers require tenants to have renter’s insurance before move-in day arrives. Though if you aren’t aware of renter’s insurance, you may not realize what to expect. For instance, what does renter’s insurance cover, how much does it cost, and what are your options? In this article, we’ll go over these topics and more.
What is Renter’s Insurance?
The compact and short 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. It’s relevant to understand that these are not covered under the property owner’s insurance policy. That insurance covers the rental house itself, though not you or your personal property.
What Does Renter’s Insurance Cover?
Many of the more common forms of loss that are commonly covered under a renter’s insurance policy embody theft, fire, and damage or injury due to natural disasters. Subject to the nature of the policy you invest in, yours may moreover cover things such as vandalism, losses due to civil disturbances, and damage caused by malfunctioning systems in your rental home, in particular the plumbing, heating, or air conditioning and so on. If the damage is bad enough, your policy may likewise pay for the cost of alternative housing, meals, and other living expenses while your rental home is being fixed and restored.
But take note, one of the most vital things that a renter’s insurance policy covers is 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 that there’s a civil or personal injury lawsuit. In several instances, your insurance may moreover cover the cost of the legal representation you’ll need to assist you to defend yourself in court and likewise, any damages (up to your coverage limit) awarded to the other party.
What’s Required and How Much Does It Cost?
Even if not required by law, lots of landlords and property owners require proof of a renter’s insurance policy to lease their home. But conceding that it’s not required, a renter’s insurance policy is indeed something you should have. Many policies don’t cost much, nevertheless, the protection they endow is largely valuable.
Before you start shopping for a policy, make sure you recognize what the required liability limit is. Most landlords will elaborate the required liability limits in their lease and demand you to have specific endorsements like floods or earthquakes. These endorsements are mostly based particularly on your location and can possibly be optional or required. Every situation and policy will be different, so it’s relevant to know and realize what you need.
The type of policy and the coverage you decide can indeed affect the cost of your renter’s insurance policy, and monthly premiums will be different for each. As pointed out by a recent analysis, the national average cost of renter’s insurance was $14 a month. But certainly, quite a lot of renters pay a monthly premium of between $5 and $30. That’s a small price to pay for the kind of protection and peace of mind a renter’s insurance policy gives.
Shop Your Options
With an awful lot of different options and rates out there, it’s an excellent idea to shop around some before settling on an insurance company for your renter’s policy. If you already have car insurance with a big company like, for example, State Farm, Allstate, or Progressive, you can oftentimes add on a renter’s insurance policy pretty effortlessly. Although it still doesn’t hurt to acquire quite a few quotes, and also from several of the newer insurance platforms, prior to selecting one. By doing so, you perceive that you’ve truly identified and found affordable coverage for you, your guests, and your belongings that bestows the amount of protection you entail.
If you are an owner looking for someone to take over the day-to-day tasks of your investment property, contact our team of Rigby property managers for more information. Don’t forget to ask about our FREE rental market analysis.
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