Renting a new place is full of pretty exciting decisions. Getting renters insurance isn’t one of them.
Be that as it may, renters insurance is sometimes a “necessary evil,” so to speak. Although renters insurance isn’t a legal necessity, some landlords tack it onto a lease to give tenants an added layer of protection. So, if you sign a lease that requires renters insurance, get ready to go out and get some. Then, seal the deal and promptly provide the landlord with proof of renters insurance.
What is renters insurance?
Don’t agree to get something you don’t fully understand. Fortunately, renters insurance, also known as tenant insurance, is a pretty simple concept.
Even though the landlord has insurance that covers their own liability and property, renters are not typically covered. So, if something goes awry, the landlord’s policy is likely to leave a renter high and dry. Much like other types of insurance policies, renters insurance protects a renter in a few different ways.
Liability
Let’s say a guest slips on a wet kitchen floor and breaks their leg in your rental house or apartment. The renters insurance can cover their medical bills if you’re declared responsible for the mishap. That’s far better than forking over your own savings. Renters insurance can also cover any liability if you cause damage to another person’s property. Liability coverage is a pretty normal part of any renters insurance policy, and a typical plan can cover anywhere up to $100,000.
Personal property
A home burglary is never a good thing, but a tenant with a renters insurance policy is likely to face less aggravation. This is because the policy covers the repair or replacement of personal items, including furniture, electronics, clothes, etc. Depending on the policy, it may also cover items taken if someone breaks into your car! Make sure you’re crystal clear about whether or not you’ll have to pay a deductible, though. Also, some personal items are often not covered by renters insurance, like a stamp collection or expensive jewelry. Those would require separate coverage.
Additional living costs
Occasionally, a unit is left temporarily unlivable, whether it’s because a tree fell on your rental’s roof or a break-in left things in disarray. If something like this happens, renters insurance should cover the cost of staying somewhere else, like a hotel. This is also known as “loss of use” coverage.
Like other types of insurance policies, rental insurance coverage amounts vary depending on your personal needs. So, the more budget-friendly policies won’t cover as much as pricier options.
Now that you know what it does, it’s time to learn how to obtain proof of renters insurance.
When and how to get renters insurance
First, do yourself a favor and get multiple quotes from reputable renters insurance providers. The good news is that renters insurance shouldn’t break the bank. Typically, renters insurance costs between $15 to $30 per month. A few things affect this rate, including your credit score, pet ownership status and whether you’ve ever filed previous claims. Also, cities that regularly deal with natural disasters (tornadoes, earthquakes, mudslides, hurricanes, wildfires, etc.) are more expensive to cover. Renters with other types of insurance policies, like automobile insurance, are often able to bundle and save.
Once you’ve settled on a renters insurance policy, find out exactly when the landlord expects to see proof of coverage. Is it the same time you sign the lease? Or, is there a grace period after you take occupancy of the unit? Avoid any unnecessary risk by getting your ducks in a row early.
How to get proof of renters insurance
There are multiple ways to show proof of renters insurance, so ask the landlord up front what they prefer.
Have your insurance agent handle it
Once you buy and pay for the policy, ask the insurance agent to send proof to your landlord directly via mail or email.
Find the declarations page
Every policy has a “declarations page,” which specifies the type and amount of coverage you purchased. It will also show necessary details, like the policyholder’s name, policy number and so on. The policyholder can ask the agent for a hard copy of this page, but it’s probably available in the online account. Ask the landlord if they’d like this proof mailed, dropped off by hand, emailed, texted, etc. Really well-oiled communities have a spot on their website for tenants to upload important files, like this one.
Designate the landlord as an “interested party”
Many insurance companies offer the option of setting up a landlord as an “interested party.” This is also called a “third-party designee” or “additional interested.” Such a person does not have the power to edit a policy but will know if you make changes, or if you terminate the policy.
Tell them yourself
Some landlords are very trusting. If yours is one of these, a simple call or text to confirm renters insurance is probably enough. Don’t lie, though. That could get ugly.
Quick and easy renters insurance
Fortunately, the process of providing proof of renters insurance is a pretty quick one. If only we could say the same about the actual moving process!
Source: rent.com