It has become very common for landlords to require that renters have a renters insurance policy. This is because this type of policy provides the owner with additional protection if there is an accident or injury on the property.
Here is an example. If your satellite dish flew through the roof and caused injury or property damage, a claim could be made on your renter’s policy. If you didn’t have one, the injured party can try to claim against the owner.
A renter’s policy will have two main types of coverage. One coverage will be for your personal property. You usually get $ 10,000 or more for that. The landlord will be more concerned about you having liability coverage. Typically, homeowners will require you to have at least $ 50,000 in liability coverage. Some homeowners will want a limit of $ 100,000 or even more. The cost of increasing the liability limit is very low, so you may want to increase even if it is not necessary.
Most renters policies will have a variety of other benefits. If your residence suffered covered damage, a good policy would cover the cost of renting a temporary place to stay while the repairs are done. Your policy may also provide emergency first aid to others at the time of an insured accident. There may also be coverage for your personal property away from home. An example of this could be if your car property is stolen. Property away from home will generally be a percentage of your total personal property limit. Some policies will also provide identity theft coverage. If someone misuses your identity, this can help cover the damages.
Fortunately, this type of policy is quite inexpensive. I am in the Houston, Texas area, and a minimum policy usually costs between $ 10 and $ 14 per month. For inland areas with reduced hurricane risk, the rate will likely be lower. The renter’s policy will generally qualify you for a discount on your auto policy if you get it from the same provider. As an insurance agent, I suggest you consider this type of policy if you are a renter. Even if the owner doesn’t require it!
As a disclaimer, there are many different types of policies, so ask your agent to review what is covered. Be sure to ask your agent what updates are available. All policies have conditions and exclusions, so the characteristics may vary from what I described.
