What to Expect from a Renter’s Insurance Policy

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. Most Teaneck property managers require tenants to have renter’s insurance before moving-in day. But if the idea of renter’s insurance is new to you, you may not know what to expect. This includes a renter’s insurance coverage, cost, and possible options. In this article, we will look into these topics and more.

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. If the extent of the damage is bad enough, your policy could even pay for the cost of alternative housing, meals, and other living expenses while your rental home is being repaired.

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 either injured themselves or experienced damage to their personal property while at your rental home, renter’s insurance will cover you in the event of a civil or personal injury lawsuit. Your insurance could even cover the cost of legal representation to defend yourself in court as well as any damages awarded to the other party, provided these are within your coverage limit.

What’s Required and How Much Does It Cost?

While it is not required by law, many landlords and property owners may require proof of a renter’s insurance policy to lease their home. And even if it is not a requirement, a renter’s insurance policy is something you should have. 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. Most landlords define the required liability limits in their lease and will require you to have specific endorsements like floods or earthquakes. These endorsements differ between locations and can be optional or required. As every situation and policy is different, you should be aware of what you need.

The cost of your renter’s insurance policy, as well as monthly premiums, will depend on the type of policy and coverage you choose. 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 a really small price to pay for the kind of protection and peace of mind a renter’s insurance policy will afford you.

Shop Your Options

Shop around for different options before settling on 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. It also wouldn’t hurt to get quotes from even newer insurance platforms before choosing one. That way, you can be assured that you have found affordable coverage for you, your guests, and your belongings that offer the ideal 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 Teaneck property managers for more information. Don’t forget to ask about our FREE rental market analysis.