What is Renters Insurance?
Renters insurance, also known as tenants insurance, is coverage for those who rent or lease their homes. Coverage can be for a house, apartment or any other dwelling that qualifies as a residence. Landlords are required to provide insurance coverage for the structure of your residence; the roof, building exteriors and detached garages are included in their responsibilities. Renters insurance will provide coverage for third-party liability, if a visitor is injured in your apartment, for example, as well as for your personal property against such perils as fire, theft and vandalism. Water damage coverage and other endorsements are available for renters insurance. Since renters insurance doesn't cover the outside of your dwelling, or its surrounding property, it is very affordable coverage.
It is often required by rental properties that tenants purchase renters insurance, protecting the management from liability should any incident occur. It is important to know what your renters insurance covers, but equally important is understanding what your landlord's policy includes/excludes. A qualified expert in renters insurance from The Insurance Shop will help you understand both policies and all your options before finding you the most competitive rates for the coverage you choose. Essentially, there are three types of coverage available: loss of use, personal property and personal liability. Loss of use coverage can come in very handy should your dwelling become inhabitable, it usually provides coverage for additional living expenses accumulated while your home is being restored.
What does Renters Insurance Cost?
Renters insurance is extremely affordable since it does not cover the outside of your dwelling. In fact, according to the Association of Insurance Commissioners, the average policy costs just $184 per year for coverage that ranges from $30,000 to $50,000 with a deductible of $500 to $1,000. Naturally your rate will be affected by several factors such as your geographic location, property value and coverage options such as deductibles and limits.
What are Common Renters Claims?
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According to claims data provided by Allstate the following are the four most common claims filed by both renters and condo owners (as these types of policies are very similar):
- Burglary. Burglary is the theft of items from your home. The burglary rate in U.S. cities is 822 per 100,000 residents.
- Property Theft. The theft of personal property while away from home, of such items as your cell phone, laptop computer or briefcase, is nearly six times as likely than a burglary at your home.
- Fire. Claims for fire damage in the midwest have the highest average loss per capita at $46.7 million, the rest of the country ranges from $34.6 million to $43.6 million.
- Third-party liability. Injuries inside homes result in more than 21 million medical visits per year. While it can't help pay for your own family's injuries, your condo insurance could cover dog bites inflicted to your guests or if they slip and fall, etc.
How Can I Reduce My Risk?
Reducing your rented residence exposures such as to fire or theft can be relatively simple. Authorities have posted tips on protecting your home and belongings. These tips include being smart on social media (careful to not publicly post when you'll be out of town for example) and using secure locks and alarms for your valuables. There are also precautions, aside from smoke/fire alarms, that one can take against fire. Keeping plants watered, prohibiting smoking inside unit and keeping important documents and items in a fire-proof box are all good examples of such precautions.
Mitigating third-party liability risks by securing rugs with non-slip products, fixing loose railings or floor boards in a timely manner (or requesting management do so) and keeping loose cords, toys and other fall risks off the floor will greatly reduce the risk of a visitor being injured in your home. When you work with an experienced agent, like those at The Insurance Shop, you can rest assured knowing that they have identified your specific risks and worked with you closely to get them covered.
Frequently Asked Questions
- Does Renters Insurance Cover Fire Damage?
Renters insurance covers fire and smoke damage after you pay your deductible. The amount of compensation you will receive in the event of fire damage depends upon several factors, including:
Does Renters Insurance Cover Theft?
- The amount of coverage you buy.
- Whether you choose actual cash value (depreciated) coverage or replacement cost coverage for your belongings.
- Your deductible amount.
Renters insurance covers your possessions from theft, after you pay your deductible amount. Renters policies typically cover your belongings, whether your rental home is burglarized, or the items are stolen from your car or while you are traveling.
Does Renters Insurance Cover Car Damage?
Your renters insurance will typically cover your belongings if they are stolen from your car, but would not cover damage to the car itself. For car damage, you will need personal auto insurance.