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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 Williamsburg 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 does renter’s insurance cover, how much does it cost, and what are your options? This article will go over 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 specifically for the rental house and not you or your personal property.

What Does Renter’s Insurance Cover?

Typically, renter’s insurance policies cover losses like 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 there is a lot of damage, your policy might 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. Some insurance options even cover the cost of the legal representation you’ll need to help you defend yourself in court as well as any damages awarded to the other party as long as 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. Required or not, a renter’s insurance policy is something every renter should have. These policies are usually reasonably priced and offer extremely valuable protection.

Before you even look around for a policy, make sure you know what the required liability limit is. There are some landlords who will define the required liability limits in their lease and require you to have specific endorsements like floods or earthquakes. Most of the time, these endorsements are based on your location and can be optional or required. Each situation and policy will be different, so you must know what you need.

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

Shop around for different options before choosing 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 Williamsburg property managers for more information. Don’t forget to ask about our FREE rental market analysis.

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