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. Many Three Forks property managers require their tenants to have renter’s insurance before the day they move into a property. If you are not familiar with renter’s insurance, you might not know what to expect. For example, what does renter’s insurance cover, how much does it cost, and what are your options? 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 insurance is for the rental house itself and does not include you or your personal property.
What Does Renter’s Insurance Cover?
Some losses typically covered under a renter’s insurance policy include theft, fire, and damage or injury arising from 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. Depending on the extent of the damage, your policy might even pay for the cost of alternative housing, meals, and other living expenses during the repair of your rental home.
But one of the great features of a renter’s insurance policy is that it covers accidental injuries to other people who may be visiting your rental home. For example, if your visitor injured themselves or experienced damage to their personal property while they were at your rental home, renter’s insurance will cover you in case 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 a requirement by law, a lot of landlords and property owners require proof of a renter’s insurance policy before leasing their home. However, even if you are not required to have one, you should still get a renter’s insurance policy. Policies don’t usually cost much but they offer extremely valuable protection.
Before you start comparing policies, make sure you know what the required liability limit is. Some landlords indicate the required liability limits in their lease and you might need 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. As every situation and policy is different, you should be aware of 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
With the many options and rates available in the market, it is good to shop around before choosing an insurance company for your renter’s policy. If your car is insured under a big company like State Farm, Allstate, or Progressive, you can easily add on a renter’s insurance policy. But it won’t hurt to compare a few quotes, including some from newer insurance platforms. This way, you know you have selected the most affordable coverage for you, your guests, and your belongings that offer the best 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 Three Forks property managers for more information. Don’t forget to ask about our FREE rental market analysis.
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