From students to retired couples and everybody in between, renters are comprised of a wide variety of people. Renters insurance is an insurance policy that provides coverage for a policyholder’s belongings, liabilities, and possibly living expenses in case of a loss event. The policy protects against losses to the tenant’s personal property within the rented property. While, landlords have an insurance policy that covers the building you are living in, landlord insurance does not extend to personal possessions.
It is important when looking to buy renters insurance that one is aware of the different types of coverage. There is:
1. Coverage for Personal Possessions: This helps protect one’s belongings in case of a covered loss.
2. Liability Protection: This can help protect one financially in case someone is injured in your home and files a lawsuit.
3. Additional Living Expenses Protection: This helps cover the reasonable costs of staying somewhere else after a covered loss renders your home uninhabitable.
Prices greatly vary depending on property location, the type of dwelling, content value, deductible, and reimbursement limits. In addition, the renter’s insurance package you choose significantly impacts how much coverage you have. A common misconception is that if your roommate has renter’s insurance, you don’t need it. While some policies cover roommates, most do not. It is important to know what the policy covers, and who it covers.
Here are some basic tips and ways to save:
If money is one of the main reasons you do not want to buy renters insurance, you can save money by choosing a more expensive deductible. The more risk you are willing to assume, the less your policy will cost.
Furthermore, you can choose between Actual Value Coverage (AVC) and Replacement Value Coverage (RVC). By choosing AVC, you are agreeing to getting paid for the depreciated value of the loss, while RVC will give you enough money to buy another product just like the one you lost. Replacement Cost Insurance is normally about 25% more expensive than the Actual Cash Value policy.
Credit score also greatly impacts price. Many insurance companies check your credit score and the lower your score, the higher the premiums.
As a property manager, it is extremely helpful to offer affordable renters’ insurance at the time of lease signing. By telling tenants who are renewing leases and tenants who are new to your building the exact cost of renter’s insurance, it can reduce stress and show the tenant that you value their time and money. Since renter’s insurance is one of the most important policies to protect a tenant’s property, it is beneficial that a property management company offer a variety of policies that a tenant can choose from and have easy access.