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What to Expect from a Renter’s Insurance Policy

Model Home with a Speech Bubble that Reads InsuranceOne 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 Ewa Beach 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. For example, what exactly does renter’s insurance cover, how much would it cost, and what are the different options available? In this article, we will look into these topics and more.

What is Renter’s Insurance?

The simplest definition of renter’s insurance is that it is an insurance policy that covers personal liabilities, belongings, and sometimes living expenses in case of injury, damage or loss. These items are the ones not covered under the property owner’s insurance policy. That insurance is for the rental house itself and excludes 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. 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.

One great feature of renter’s insurance policies is its coverage of accidental injuries to other people while 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 a requirement by law, a lot of landlords and property owners require proof of a renter’s insurance policy before leasing their home. But even if a renter’s insurance policy is not required, you should still get one. For the valuable protection, they offer, many policies won’t cost you much.

Before you compare policies, make sure you know what the required liability limit is. Most landlords indicate the required liability limits in their lease and often require tenants to have specific endorsements like floods or earthquakes. These endorsements differ between locations and can be optional or required. You must determine what you need since every situation and policy will be different.

The type of policy and coverage you choose will affect the cost of your renter’s insurance policy as well as the 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. 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

It is always good to shop around before settling on an insurance company for your renter’s policy. If you already have car insurance with a big company such as State Farm, Allstate, or Progressive, you can ask how to 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 Ewa Beach property managers for more information. Don’t forget to ask about our FREE rental market analysis.

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.