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What to Expect from a Renter’s Insurance Policy

Model Home with a Speech Bubble that Reads InsuranceAs a renter, one of the most significant things you can accomplish to protect yourself, your visitors, and your personal belongings is to buy a renter’s insurance policy. In reality, countless Cambridge property managers require tenants to have renter’s insurance before move-in day arrives. Nevertheless, if you aren’t acquainted with renter’s insurance, you may not understand what to expect. For example, what does renter’s insurance cover, how much does it cost, and what are your options? In this article, we’ll go through these topics and more.

What is Renter’s Insurance?

A brief definition of renter’s insurance is that it is an insurance policy that covers personal liabilities, belonging, and sometimes living expenses in case of injury, damage, or loss. It’s essential to perceive that these are not covered under the property owner’s insurance policy. That insurance covers the rental house itself, but sadly, not you or your personal property.

What Does Renter’s Insurance Cover?

Several of the more common kinds of loss that are mostly covered under a renter’s insurance policy are theft, fire, and damage or injury due to natural disasters. Contingent on the category of policy you obtain, yours may likewise cover things such as vandalism, losses due to civil disturbances, and damage caused by malfunctioning systems in your rental home, the same with the plumbing, heating, or air conditioning and so on. If the damage is horribly big enough, your policy may moreover pay for the cost of alternative housing, meals, and other living expenses while your rental home is being fixed and taken care of.

Though one of the most imperative things that a renter’s insurance policy covers is accidental injuries to other people while visiting your rental home. For instance, if your visitor either injured themselves or experienced damage to their personal property while at your rental home, renter’s insurance will cover you just in case of a civil or personal injury lawsuit. On many occasions, your insurance may likewise cover the cost of the legal representation you’ll need to aid you to defend yourself in court besides any damages (up to your coverage limit) awarded to the other party.

What’s Required and How Much Does It Cost?

Although not required by law, quite a lot of landlords and property owners demand proof of a renter’s insurance policy to lease their home. But although it’s not required, a renter’s insurance policy is, nevertheless, something you should have. Several policies don’t cost so much, though the protection they give is substantially valuable.

Before you begin shopping for a policy, ensure you realize what the required liability limit is. Quite a lot of landlords will clarify the required liability limits in their lease and clearly require you to have specific endorsements like floods or earthquakes. These endorsements are commonly depending on your location and could be optional or required. Every situation and policy will be different, so it’s essential to understand and know what you need.

The type of policy and the coverage you pick can additionally affect the cost of your renter’s insurance policy, and monthly premiums will differ. As stated by a recent analysis, the national average cost of renter’s insurance was $14 a month. However, a lot of renters pay a monthly premium of between $5 and $30. That’s a small price to pay for the kind of protection and peace of mind a renter’s insurance policy endows.

Shop Your Options

With so many different options and rates out there, it’s a great idea, indeed, to shop around a little prior to selecting an insurance company for your renter’s policy. If you already have car insurance with a huge company like State Farm, Allstate, or Progressive, you can add on a renter’s insurance policy pretty smoothly. But certainly, it still doesn’t hurt to have more options, like those from many of the newer insurance platforms, before settling on one. Thereby, you realize that you’ve definitely found affordable coverage for you, your guests, and your belongings that grant the amount of protection you require.

 

If you are an owner looking for someone to take over the day-to-day tasks of your investment property, contact our team of Cambridge property managers for more information. Don’t forget to ask about our FREE rental market analysis.

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