Everything You Need to Know About Renters Insurance
Anyone who has ever lived in apartments for rent has a general idea about renters insurance, but it seems there is often conflicting information out there. To help provide a clear and accurate picture we lay out what it is, what it covers, how much it costs and how much you need.
What is renters insurance?
For individuals living in apartments for rent, renters insurance provides coverage for: (i) loss, damage or theft of your personal possessions, and (ii) any injuries another person may incur (deemed to be your fault) while at your rental residence.
In regards to the injury protection, an example of this would be if someone slipped and fell in your kitchen and broke their arm. Renters insurance would cover the renter in two ways: (i) It would cover any costs associated with the other persons injury, and (ii) would cover any legal fees (to a defined and set limit) if there was a lawsuit filed against you as a result of that injury.
What does it cover?
Renters insurance provides financial reimbursement in the event of loss or damage to a renters possessions due to (i) fire, (ii) theft, (iii) vandalism, (iv) water damage (caused by a leak or faulty equipment in your apartments for rent, not because of a natural disaster) and (v) storm damage. It will also cover the costs of another rental if your unit is deemed uninhabitable due to fire or storm damage.
The amount of financial reimbursement and coverage associated with a visitor being injured while at a renters premises depends completely on the circumstances of the incident and who was deemed at fault.
How much will it cost me?
One of the great things about renters insurance is that it is very affordable. The cost of coverage depends on two main factors: (i) where the renter lives, and (ii) the amount of coverage they want to carry on their policy.
On average a renter can expect to pay anywhere from $100 to $250 a year for renters insurance. According to TrustedChioce Independent Insurance Agents, the national average for renters insurance is $15 to $30 per month.
How much coverage should I have?
With any renters insurance policy you will choose dollar amounts for three types of coverage:
Personal property: This coverage includes all of your personal belongings (minus additional riders addressed below). Most renters insurance providers require a minimum of $2500 in coverage.
Many renters get tripped up with this part of the policy because they can’t put a dollar amount on all of their belongings that have accumulated over years. A great way to get to a ballpark amount of coverage is to make an itemized list of your belongings and their corresponding replacement costs.
It’s also worth noting that the average renter has anywhere between $20,000 and $25,000 worth of personal property.
Liability: This coverage includes the payout for any liability claims as well as any legal defense costs. Renters can choose any amount, but most apartments for rent require a renter to carry a minimum of $100,000 in coverage.
Additional riders: There are some personal items that are not covered under the “personal property” coverage type and must be covered under what are called “additional riders”. These include: jewelry and outdoor recreational vehicles like snowmobiles, wave runner/jet skis or ATVs.
Seeking Apartments For Rent? Better Get that Renters Insurance!
As Mississippi apartment experts we at Hattiesburg Apartments get asked a lot about renters insurance and the first question we usually hear is, “Do I really need it? Doesn’t my landlord have insurance?” While yes, your landlord does have insurance, but it only covers damage to the actual structure of your apartments for rent…not the belongings held within it.
After over 30 years in the Hattiesburg rental market we have seen a lot of disastrous situations and there is nothing worse than a renter who loses everything and has no financial backing (aka renters insurance). If you are still unsure about renters insurance and how that fits with your apartments for rent, give us a call at (601) 264-4626 and we can help point you in the right direction.