If you are renting a place to live, especially an apartment, you may be required to carry renters insurance by your landlord. Unfortunately, this also means that you can be evicted if you fail to carry renters insurance as specified by your rental agreement.
Keep in mind that it must be stated on your rental agreement in order to receive repercussions for not carrying renters insurance.
What Does Renters Insurance Cover?
A basic renters insurance policy typically includes:
· Liability Insurance: Liability insurance covers bodily injury and property damage that may occur on your rented property. If someone visiting your home falls and breaks their wrist, for example, liability insurance can cover their medical bills. It can also protect you from a related lawsuit.
· Personal Belongings Coverage: Personal belongings coverage provides compensation for loss of or damage to your personal belongings caused by fire, wind, hail, lightning, smoke, theft, vandalism and more.
· Additional Living Expenses: Additional living expenses (ALE) help cover the cost of temporarily moving if your rented property is rendered uninhabitable by a disaster or accident.
Renters insurance does not cover the physical rental property, even the actual unit. Instead, they will be covered under your landlord’s property insurance. This doesn’t mean that you will not be held responsible for damages, however. If you cause a kitchen fire that damages your
Why is Renters Insurance Required?
Landlords require tenants to carry renters insurance primarily to protect other tenants and themselves in case of an accident. For example, your own personal belongings will not be covered under your landlord’s property insurance. If a disaster occurs and you do not have renters insurance, you would have to replace or repair all of your belongings out of pocket.
Landlords also require this because of the liability attached. Renters liability insurance covers bodily injury and property damage that may occur on your property. It can also cover damages and injuries caused by your children or pets. For example, if you are walking your dog who does not like men and a man gets close, resulting in an attack, liability under renters insurance can help pay for the man’s medical bills. It can also protect you in case the victim decides to sue for further compensation.
In some states, landlords have a cap on how much renters insurance they can require. This limit can still vary from place to place and apartment to apartment, so be sure to ask before you sign your lease.
The upside is that renters insurance is relatively inexpensive. In fact, you could spend less a month on renters insurance than the average cost of a streaming service.
Can I Be Evicted Without Warning?
Landlords must give you at least a 30 day notice of eviction. Within this period, you typically have the opportunity to rectify the situation. For example, if you receive a 30 day notice, you should have 30 days to purchase renters insurance and notify your landlord. If you do this in time, you generally won’t be evicted. If you don’t, you may be evicted at the end of your 30 day notice. The notice length may vary depending on your lease, so be sure to check the specifications before and after you sign.
How Can I Save Money on Renters Insurance?
There are always ways to save money on renters insurance. Be sure to shop around and compare quotes among multiple insurers so you can get the best renters insurance policy for the right price. If you are having trouble finding renters insurance, ask your landlord and insurance agent. If you have auto insurance, your insurer may also offer renters insurance. Bundling insurance with one provider can also save you money.
Keep in mind the key factors affecting your renters insurance rates:
· Coverage limits
· Claims history
· Credit score
Location matters in many ways. If you live in an area with a high rate of theft and vandalism, you may pay higher rates for renters insurance due to the increased risk. The more likely you are to file a claim, the higher your renters insurance rates may be. This is one of the many reasons it is important to choose your living space wisely.
A low credit score may raise your renters insurance rates while having a high credit score can save you money. While many apartment complexes offer renters insurance through their own program, it is generally cheaper to bundle renters insurance with your already existing auto insurance policy.
Coverage limits can also affect your rates, as more coverage equals higher premiums. Lowered coverage can leave you vulnerable to other losses, however.
Ask your insurance agent about ways you can save money on renters insurance. Even without the requirement of your landlord, renters insurance is crucial for protecting your belongings and your livelihood in case of an accident.