What to Expect from a Renter’s Insurance Policy

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 Wesley Chapel property managers now make it a practice to ask tenants for their renter’s insurance before move-in day comes. If you are not familiar with renter’s insurance, you might 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. Do note that these are items not included in the property owner’s insurance policy. That insurance covers the rental house itself, but not you or your personal property.

What Does Renter’s Insurance Cover?

Some common types of loss covered by a renter’s insurance policy include 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. 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.

One great feature of renter’s insurance policies is its coverage of accidental injuries to other people while visiting your rental home. For instance, one of your visitors injured themselves or experienced damage to their personal property while they were 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 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. These policies are usually reasonably priced and offer extremely valuable protection.

Before shopping around for a policy, it is best to 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. These endorsements vary by location and can be optional or required. You must know what you need since every situation and policy will be different.

The type of policy and coverage will affect the cost of your renter’s insurance policy and your monthly premiums will differ. 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

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. 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 is still prudent to get 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 Wesley Chapel property managers for more information. Don’t forget to ask about our FREE rental market analysis.