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Renters Insurance

March 22, 2022

Renters Insurance Covers Real Losses

Many long term renters have accumulated significant financial assets in their homes. If in the case of fire, theft, or wastewater backups, they will likely not be covered via insurance.

In case of disaster, the renter could lose a great deal. Recovering items such as sofas, beds, laptops, furniture, electrical appliances, and so forth could be difficult. Starting all over is something you may not want to think about, but such disasters do happen.

Recently, strong weather events are causing fires, floods, downed trees and roof damage that can result in not only loss to landlords, but also to you.  Landlords insurance won’t cover you and in fact, landlords are more frequently requiring tenants insurance.

Why? Because from experience, everyone learns that their property isn’t necessarily covered.  Landlords aren’t responsible for your property and you’ll find sections in your lease that stipulate that landlords are not responsible financially for your losses.  Accidents happen.

Find out more about what renters insurance actually covers.

ManageCasa’s Renters Insurance Service

As a service to property managers and you, ManageCasa will be offering tenants insurance coverage directly from the ManageCasa platform.  Tenants can log in to create a pre-approved tenant insurance application, decide on coverage, get a quote, and subscribe to the monthly premiums. It’s an easy, automated, streamlined process to help put your mind at ease. You’re completely in control of your insurance.

Your landlord will be notified automatically that you are covered.

Insurance Rules and Regulations Have Changed

In decades past, the belief was that “someone, the landlord, or an insurer will cover me if something happens.”  Times have changed, and those backups don’t actually exist anymore. When you try to make a claim to someone, you discover there is no one. You are responsible for your finanical protection.

Today, with near zero vacancy rates, you’re in big trouble without a place to go should fire or floods destroy the rental unit you occupy. And buying new furniture, electronic devices and sports equipment from scratch is an uncomfortable prospect. And the courts may not have any remedies for your losses either.

Renters insurance helps you protect yourself.

 

Claim Denied: Changes in what insurance companies will pay out for today makes renters insurance a priority for many renters. The forgiving system that existed has been discontinued. Now you need your own coverage.

 

In some jurisdictions, renters insurance is mandatory, and in others, landlords and property managers are insisting on it, to protect the owner from legal action and from seeing tenants suffer.  Because fires, storms and floods do happen.

Getting your Coverage

You might be thinking that renters insurance only covers your belongings and furniture. Where it’s actually needed is in accident liability. Right now, you may not be covered at all if you have a fire in the kitchen, or your bathtub overflows, or if someone falls in your unit and suffers a debilitating injury.

 

A research report indicated that only 41% of renters carrying renters insurance.

 

Typical policies are about $20 a month and offer $100,000 liability and $15,000 in personal property coverage. That’s reasonable, however, actual insurance claim costs can easily rise above these levels.

Even in 2022, Apartment Fires Will Happen

What Does Tenants Insurance Cover?

Tenant or Renters insurance policies cover you 3 ways:

1. Coverage for personal possessions
2. Liability protection
3. Additional living expenses (ALE)

All risk tenants insurance covers your personal property and gives you liability protection in the event of:

  • Fire or lighting
  • Windstorm or hail
  • Certain water damage
  • Theft

What’s covered in your policy is covered in either all risk or named perils policy types. How much your premium will be depends on your building’s construction, previous claims you’ve made, and how much coverage you want.

You’re Not Covered by Your Parent’s or your Landlord’s Home Insurance

It’s all on you now. Renters are surprised when they hear that they aren’t covered by the landlord’s insurance which has its own set of coverage types and requirements. And they may not be covered by their parents home insurance either.

The landlord’s own insurance might not cover them for damage to the house, condo or apartment building by you. There really is liability exposure that could ruin people’s financial lives.

Landlords and property management companies want to reduce their high insurance premiums, and a tenant is often considered a costly liability by insurance companies. That cost instead must be passed onto you, the renter.

As noted above, renters insurance premiums are reasonable and consistent.

Statistic: Value of average premiums for renters insurance in the United States from 2001 to 2015 (in U.S. dollars) | Statista

Find more statistics at Statista

 

Million Dollar Property Claims

Law suits and claims can actually be very expensive. Damage to a building creates costs in the tens of thousands of dollars. Who hasn’t had a kitchen sink overflow once or spilled something terrible on hardwood floors?

And a building fire started in your unit or balcony, could cost millions. The use of rental properties for drug manufacturing and grow ops has added pressure to make tenants more accountable for careless behavior.

The Upside on Renters Insurance

Aside from helping you sleep at night and feel less anxious when you leave your unit, renters insurance can protect you from theft at home, in your car, or even on the road in a hotel room.

And if you have expensive jewelry, collectibles, bicycles, sports equipment or music instruments, you can add a floater to your policy to in case you lose them or they’re stolen. Of course, you will have to pay a deductible fee if you make a claim. That’s primarily to discourage fraudulent claims.

If you live in cities such as Los Angeles, New York or San Francisco, or San Diego you’re likely paying up to 60% of your income to rent, however your pain could be much worse if you lose all your possessions in a fire, or they’re stolen.

Renters, are you tired of how your landlord or property management company manages communication and repair/maintenance requests? Do you hate the delays when landlords respond or try to reach you at the wrong times?

Have them take a good look at ManageCasa property management software. It’s convenient and fits in with your modern lifestyle. You’ll be doing your landlord a favor.

Take it for your own Test Drive Now!

 

See also:  Property Management Software | Apartments for RentRenters Insurance2022 Rental Housing Market | Highest Apartment Rental Prices | Best Cities to Buy Investment Property | TX Rental HousingReduce Tenant Turnover | Property Management SoftwareCredit Report Checks for Tenants | Background ChecksIncrease Rent on Rental Property | How to Increase Property Cash FlowProperty Tax Tips | Real Estate Portfolio Tips | Start a Property Management Business | How to Use Property Software | ManageCasa Online Property Software

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