As a renter, one of the most essential things you can implement to protect yourself, your visitors, and your personal belongings is to buy a renter’s insurance policy. As a matter of fact, lots of Plano property managers require tenants to have renter’s insurance before move-in day arrives. But on the flip side, if you aren’t knowledgeable about renter’s insurance, you may not be aware of what to expect. Take one example, what does renter’s insurance cover, how much does it cost, and what are your options? In this article, we’ll check out these topics and more.
What is Renter’s Insurance?
The concise definition of renter’s insurance is an insurance policy that covers personal liabilities, belonging, and sometimes living expenses in case of injury, damage, or loss. It’s imperative to know that these are not covered under the property owner’s insurance policy. That insurance covers the rental house itself, but definitely not you or your personal property.
What Does Renter’s Insurance Cover?
Quite a lot of the more common categories of loss that are usually covered under a renter’s insurance policy include theft, fire, and damage or injury due to natural disasters. Conditional on the kind of policy you possess, yours may additionally cover things like vandalism, losses due to civil disturbances, and damage caused by malfunctioning systems in your rental home, namely the plumbing, heating, or air conditioning and so on. If the damage is nasty enough, your policy may additionally pay for the cost of alternative housing, meals, and other living expenses while your rental home is being fixed and renovated.
However, one of the most significant things that a renter’s insurance policy covers is accidental injuries to other people while visiting your rental home. As an illustration, if your visitor either injured themselves or experienced damage to their personal property while at your rental home, renter’s insurance will cover you from a civil or personal injury lawsuit. In a lot of occurrences, your insurance may indeed cover the cost of the legal representation you’ll need to support you to defend yourself in court and, additionally, any damages (up to your coverage limit) awarded to the other party.
What’s Required and How Much Does It Cost?
Even though not required by law, a lot of landlords and property owners call for proof of a renter’s insurance policy to lease their home. But though it’s not required, a renter’s insurance policy is indeed something you should have. Quite a lot of policies don’t cost much, however, the protection they render is exceedingly valuable.
Before you initiate shopping for a policy, make certain you find out what the required liability limit is. A lot of landlords will disclose the required liability limits in their lease and want you to have specific endorsements like floods or earthquakes. These endorsements are generally based on your location and would be optional or required. Every situation and policy will be different, so it’s imperative to find out what you need.
The type of policy and the coverage you prefer can as well affect the cost of your renter’s insurance policy, and monthly premiums will definitely vary. As determined by a recent analysis, the national average cost of renter’s insurance was $14 a month. But in fact, various 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 presents.
Shop Your Options
With plenty of different options and rates out there, it’s a brilliant idea to shop around quite a bit just before selecting an insurance company for your renter’s policy. If you already have car insurance with a great, big company like State Farm, Allstate, or Progressive, you can always add on a renter’s insurance policy. Though it still doesn’t hurt to obtain some quotes, like from a lot of the newer insurance platforms, prior to settling on one. By doing this, you recognize that you’ve found affordable coverage for you, your guests, and your belongings that endow the amount of protection you call for.
If you are an owner looking for someone to take over the day-to-day tasks of your investment property, contact our team of Plano property managers for more information. Don’t forget to ask about our FREE rental market analysis.
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