Assurant Renters insurance provides protection for your personal belongings and liability coverage in the event of an accident in your rental property. It’s an essential policy for renters to consider. Though the landlord insures the building itself, renters insurance covers all your stuff inside.
Renters insurance can replace stolen or damaged possessions due to a covered hazard like fire, smoke, vandalism, or water damage from plumbing leaks. It also provides liability coverage in case someone is injured in your rental.
Renters policies typically cover personal belongings like furniture, electronics, clothes, and more. Coverage amounts vary, but often policies include $15,000 to $30,000 for personal possessions, with higher limits available. Liability coverage, which protects you if someone is injured in your rental, generally ranges from $100,000 to $300,000.
Renters insurance is recommended for anyone living in a rented home, apartment, condo or townhome. Without a policy, you’d have to cover the full cost to repair or replace damaged and stolen items yourself. Renters insurance provides affordable financial protection for your belongings and gives you peace of mind.
Coverage Types
Renters insurance provides several types of coverage to protect your personal belongings and protect you from liability. The main types of coverage include:
Personal Property Coverage
This coverage pays to repair or replace your personal belongings if they are stolen or damaged due to a covered event like fire, smoke, vandalism, or water damage from plumbing and appliances. It covers your furniture, clothing, electronics, kitchen items, decor, and more. Standard policies provide coverage limits around $20,000 to $30,000, but you can increase limits for an added premium. Make sure to create a home inventory to document your belongings.
Liability Coverage
Liability coverage protects you if someone is injured or their property is damaged while on your rental property. It covers both legal defense costs and any judgement or settlement up to the policy limits, which are commonly $100,000. This protects you from lawsuits that claim negligence on your part caused bodily injury or property damage to others.
Loss of Use Coverage
If a covered loss makes your rental uninhabitable, this coverage pays additional living expenses like hotel bills, restaurant meals, laundry, and storage fees until you can move back in. It may also cover lost rental income if you rent out part of your home. Standard limits are often 20% of personal property coverage.
Additional Living Expenses
Similar to loss of use, this coverage pays extra costs to maintain your normal standard of living if you can’t live in your rental due to a covered loss. It goes beyond hotel and meals to cover things like increased transportation costs, utility and phone bills, pet boarding, etc. Coverage limits are commonly around $10,000.
Factors That Affect Cost
The cost of renters insurance depends on several key factors:
Location
Where you live is one of the biggest factors in determining your renters insurance premium. Insurance companies calculate risk based on crime rates, likelihood of natural disasters, and cost of living in your area. Renters insurance will be more expensive in large cities compared to rural areas. High-risk locations like coastal regions susceptible to hurricanes will also have higher premiums.
Value of Possessions
The amount of coverage you buy for your personal belongings also affects the cost. Standard renters insurance may provide around $20,000 to $30,000 in coverage, but you can increase this if you have expensive items like jewelry, art, musical instruments, or other valuables in your home. The higher the value of your possessions, the more your premiums will be.
Deductible
Your deductible is the amount you pay out-of-pocket before insurance kicks in if you have a covered loss. Choosing a higher deductible amount lowers your premiums. A $500 or $1,000 deductible is common for renters insurance. Selecting a $2,500 deductible can reduce your costs, but make sure you have savings to cover that amount in the event of a claim.
Discounts
There are several ways to qualify for discounts and save money on renters insurance:
- Bundling with auto insurance from the same provider
- Having smoke alarms, fire extinguishers, or security systems
- Being a long-time customer with no claims
- Paying your premium upfront rather than monthly
- Having good credit
- Being over 50 years old
Taking advantage of any discounts you are eligible for will help lower the monthly or annual costs.
Top Providers
When it comes to renters insurance, there are a few major insurance companies that tend to rise to the top. Here’s an overview of some of the top renters insurance providers:
Assurant
Assurant is one of the largest providers of renters insurance in the United States. They have decades of experience insuring rental properties and work with many major property management and real estate companies to provide renters insurance.
Some key things to know about Assurant renters insurance:
-
They provide standard coverage like personal property protection, liability coverage, and additional living expenses.
-
Discounts are available for bundling renters with auto insurance.
-
Claims can be filed easily online or over the phone.
-
Customers report relatively hassle-free claims processes.
-
Premiums are competitively priced.
Lemonade
Lemonade is a newer insurtech company that’s shaking up the renters insurance market. They provide fast online quotes and claims processing through advanced AI technology.
Key features of Lemonade include:
-
Policies starting at around $5/month.
-
Extremely easy and fast online signup.
-
Claims can be filed and paid in as little as 3 seconds through their app.
-
Gives back unused premiums to customers’ chosen charities at end of policy period.
State Farm
State Farm is one of the largest insurance companies in the U.S. and a top choice for renters insurance.
Benefits of going with State Farm include:
-
Discounts available when bundling with car insurance policy.
-
Over 19,000 local agents provide personalized service.
-
Strong financial backing and history dating back to 1922.
-
Standard coverages as well as options like identity theft protection.
Allstate
Allstate is another insurance giant with competitive renters insurance options.
Highlights of Allstate renters insurance:
-
Customizable coverage options and enhancements.
-
Bundling discounts with auto and life insurance policies.
-
Access to local Allstate agents and claims adjusters.
-
Easy claims filing through mobile app or online.
-
Standard protection for personal property, liability, and additional living expenses.
Filing a Claim
Filing a renters insurance claim can often be straightforward, but the specifics depend on your policy and situation. Here are some general guidelines for the claims process:
-
Report the claim as soon as possible. Notify your insurer right away, especially for theft or severe damage. Many policies have time limits for reporting claims.
-
Document the loss. Take photos or video of damage and stolen items. Get a copy of the police report for theft. Make a detailed list of all damaged or stolen items.
-
Provide proof of ownership. Your insurer will require evidence you owned the items claimed, like receipts, manuals, or photos showing the items before the loss.
-
Allow your insurer to inspect. The claims adjuster may visit to assess damage and verify your reported losses. Cooperate fully with the inspection.
-
Get estimates for repairs. Your insurer may require multiple repair estimates for settlement of large claims. Obtain estimates from licensed contractors.
-
Submit your claim paperwork. Provide your insurer all documentation, estimates, lists, and proof of ownership. Respond promptly to any additional requests.
-
Receive your claim settlement. Most claims are settled within 30-60 days. Payment may be withheld until repairs or replacements are complete.
-
Appeal any denied claims. If your insurer denies all or part of your claim, you can provide additional information and appeal the decision. Check your policy for the appeals process.
The key is staying organized, documenting everything, and communicating promptly with your insurer. While the claims process varies, knowing what to expect can help it go smoothly.
Limits and Exclusions
Like most insurance policies, renters insurance comes with certain limitations and exclusions to be aware of. Some key things that standard renters insurance may not cover include:
Flood damage
Damage from floods is typically not covered under a standard renters policy. Those living in flood-prone areas may need to purchase separate flood insurance.
Earthquake damage
Earthquake damage is also typically excluded from basic renters insurance. For protection against earthquakes, you may need to add earthquake coverage or buy a separate policy.
Cash and valuable items
Most policies only cover a limited amount of cash, typically around $200. The same goes for valuables like jewelry, art, furs, or collectibles, which are often subject to caps of $1,000-$2,000 under standard policies. To get more coverage for these items, you’ll need endorsement or a special valuables policy.
Deductibles
Renters insurance comes with a deductible, usually around $500-$1000. You’ll need to pay this deductible amount out of pocket for each claim before the insurance kicks in. Higher deductibles can lower your premium but mean more money out of pocket per claim.
Intentional damage
Standard renters policies do not cover intentional damage caused by you, residents of your household, or your pets. Damage caused in a domestic dispute or by vandalism often won’t be covered either.
High risk items
Certain high-risk items like firearms, ATVs, pools, trampolines etc may not be covered or coverage may be limited under a basic renters policy.
Roommates’ possessions
Your policy only covers your own belongings and possessions, not those owned by roommates. They would need renters insurance for their own items.
Businesses
Renters insurance is for personal belongings only. Business property or inventory used for professional purposes is not covered.
Understanding the exclusions and limits of your renters policy is key to ensuring you have adequate protection. Consulting an agent can provide guidance on endorsements or extra coverage you may need for high value items, floods, earthquakes or other special situations.
Bundling Policies for Additional Savings
One way renters can save money on their insurance premiums is by bundling their renters insurance policy with other insurance policies from the same provider, like auto or motorcycle insurance. Most major insurance companies offer a multi-policy discount, which gives a percentage discount on premiums when a policyholder has more than one policy with them.
Bundling renters and auto insurance is one of the most common and effective ways to get a multi-policy discount. Since many renters also own a car, having both policies with the same provider makes the billing and claims process smoother. It also shows the insurance company that you are a loyal, low-risk customer.
According to Insurance.com, bundling auto and renters insurance can save you up to 30% on your total premiums. The exact amount of the discount will depend on the insurance provider, but amounts typically range from 10-30%.
When getting a quote for renters insurance, always ask the provider if they offer any multi-policy or bundling discounts. Some insurers automatically apply discounts if they can see you already have an auto policy with them. But for others, you may need to specifically request that they review your account for applicable discounts.
Bundling insurance policies is an easy way to maximize savings on premiums. Just make sure to compare bundled quotes from multiple providers, as the discount amounts can vary significantly.
Increasing Coverage
When reviewing your renters insurance policy, look for ways to increase your coverage and get the most protection. Here are some tips:
Schedule Valuables
-
Make a list of valuable items in your rental like jewelry, art, collectibles, computers, bikes, etc. Get them appraised so you know their value. Then specifically list them on your policy as scheduled items. This ensures they are covered for their full replacement value if lost, stolen or damaged.
-
Without scheduling, valuables are just subject to your policy’s standard limits for categories like jewelry or electronics. Scheduling guarantees you get fully reimbursed. There is usually a small added premium.
Request Guaranteed Replacement Cost
-
This upgrade means you’ll get paid the full cost to replace belongings, even if it exceeds your coverage limits. It’s especially important for renters as the value of possessions often outpaces standard limits over time.
-
While it costs a bit more, guaranteed replacement cost gives peace of mind knowing you won’t be left covering any gaps if limits fall short after a major loss.
Add Water Backup Coverage
-
Damage from water backups is often excluded under basic renters policies. But backups from sewers, drains or sump pumps can cause extensive damage.
-
Water backup coverage pays for damage from water that enters through or backs up from pipes or drains. While not overly expensive, many renters overlook getting this useful add-on.
-
Going over your policy to maximize coverage for valuables, replacement costs, water damage and other risks can really pay off if you ever need to file a significant claim.
Saving on Premiums
There are several ways renters can save money on their insurance premiums:
Increase your deductible:
Choosing a higher deductible is one of the easiest ways to lower your premium. A deductible is the amount you pay out-of-pocket before insurance kicks in. Standard deductibles are around $500, but you can often increase this to $1,000 or more. Just be sure you have enough savings to cover the deductible in the event of a claim.
Ask about discounts:
Most insurers offer discounts for things like being claim-free, installing security devices like deadbolts, having smoke alarms, being a student away from home, or bundling renters with auto insurance. Ask your provider what discounts you may qualify for.
Bundle policies:
You can typically save up to 15% by bundling renters insurance with auto insurance from the same provider. This gives you the convenience of one policy and payment.
Shop around annually:
Get quotes from several highly-rated insurers each year at renewal time. Premiums can vary widely between companies. Switching could save you hundreds per year. Use online comparison sites to quickly get multiple quotes.
Raise liability limits:
Lower liability limits like $20,000 can seem attractive for the premium savings. But it’s generally recommended to carry at least $100,000 in liability coverage. If you can afford higher limits, raising them from $100,000 to $300,000 could potentially lower your overall premium.
Take higher hurricane/flood deductibles:
If you live in areas prone to these disasters, taking a higher deductible like 5% of your dwelling coverage can substantially lower premiums. Just be prepared to pay more out-of-pocket if you do have a claim.
Taking the time to optimize your renters insurance can ensure you have adequate coverage at the best possible price. A little shopping around and adjusting of your policy can add up to major savings each year.