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What to Expect from a Renter’s Insurance Policy

Model Home with a Speech Bubble that Reads InsuranceAs a renter, one of the best ways to protect yourself, your visitors, and your personal belongings is to get a renter’s insurance policy. Most Goose Creek property managers require tenants to have renter’s insurance before moving-in day. Some are not familiar with renter’s insurance though. 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. 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 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.

An important feature of a renter’s insurance policy is its coverage of accidental injuries sustained by other people while they are 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. Your insurance may even cover the cost of legal representation you will need to help defend yourself in court. It could also cover any damages (up to your coverage limit) awarded to the other party.

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. Required or not, a renter’s insurance policy is something every renter should have. These policies don’t cost too much but offer extremely valuable protection.

Before shopping around for a policy, it is best to 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. These endorsements are usually location-dependent and can either be optional or required. You must determine 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. That is such a small price to pay in exchange for the protection and peace of mind a renter’s insurance policy gives.

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 big car insurance companies like State Farm, Allstate, or Progressive let you add on a renter’s insurance policy easily. But it is still helpful to get a few quotes, including from some newer insurance platforms before deciding on one. That way, you know you have found affordable coverage that provides the protection you, your guests, and your belongings 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 Goose Creek property managers for more information. Don’t forget to ask about our FREE rental market analysis.

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