Archive Revival: Why Is Renter’s Insurance Important?

Most people fall into one of two categories: They either own their home or they rent it.

If you rent your home, you don’t need a homeowner’s insurance policy.

You need what’s called renters insurance. This type of insurance policy will ensure that you have the right coverage when you need it the most.

We’ve outlined below how homeowner’s insurance and renter’s insurance are similar and and how they differ. Here is our quick summary:

Property Protection

When you rent your home, you don’t own the physical property. As a result, you are not responsible for insuring the property. Instead, the insurance policy is the responsibility of the property owner.

This means that if there is damage to any part of the exterior and interior of the property including walls, ceilings, floors, doors, or windows, you are not responsible for filing or paying for an insurance claim.

Coverage for Belongings

Similar to a homeowner’s insurance policy, a renter’s insurance policy provides coverage for your personal belongings. You need to take inventory of your belongings to give an estimate on what it would cost to replace your belongings.

When you make your home inventory, make sure that you include everything that you own, including items like electronics, furniture, clothing, and jewelry. Also include any of your own personal appliances that are not owned by your landlord or apartment complex. That way, all of your stuff will be protected against perils like fire, smoke, theft, water damage, and more.

We recommend keeping the receipts of high valued items. We also recommend storing photos of each of your rooms so you have documentation of your belongings. This will help to ensure that you are covered in case of a total loss, but aren’t overpaying for coverage that you don’t need.

Reimbursed Living Expenses

If something happens to the place where you live, your renter’s insurance typically covers your living expenses for a comparable place until the damage is repaired and your home is once more inhabitable.

If your rental home or apartment is destroyed or deemed uninhabitable, call your insurance agent right away to find out what you should do so that reimbursement is allowed.

Liability Insurance

Another type of coverage that is typically included in both renters and home insurance is liability insurance. With this coverage, you are financially protected from the costs that rise if someone is injured at your home.

Depending on your insurance provider and the policy that you choose, this can include both medical costs and legal costs, which can get very expensive, depending on the injury sustained.

As always, all of the information above depends on your insurance provider and your specific policy.

We search several insurance providers to find the one that will give you the best coverage at a price that works for you and your budget.

Cost?

On average, the cost of a renters insurance policy is $120.00 per year for $10,000 of contents, including loss of use and liability coverage, Click here for more details) in Massachusetts.

If you package your automobile insurance policy with your renter’s insurance, most times, the savings by doing so more than covers the cost of the renter’s policy.

If you have any questions about the coverage included in your current policy, or if you need a new top of the line renters insurance policy quote, please call 617-298-0655 to speak with a representative here at Vargas and Vargas Insurance Agency.

Rental Property Insurance: Being a Landlord

As experts in rental property insurance, we deal with a lot of landlords here at Vargas and Vargas Insurance Agency. This has lead us to one universal conclusion: not everyone is cut out to be a landlord. Owning a property that you rent out can be a great way to acquire income, but there are some aspects of the title that not every person is suited for.

Rental Property Insurance: Being a Landlord

If you’re thinking of purchasing a property in order to become a landlord, we encourage you to ensure that you’ve done your research before spending your money. Here are some of our tidbits of advice on how to be a successful landlord.

Prepare for the worst.

Being a landlord is not a purely financial transaction. If it were, anyone could do it! Instead, you will need to also invest lots of time and energy into your rental property. Don’t get into the business if you’re not prepared to deal with tenants that constantly have maintenance requests, or don’t pay their rent on time, or generally drive you up a wall with their issues. If you’re up for that, then you may just have what it takes to be a landlord.

Get your finances in order.

If you are ready to buy a property for renting, you need to check and double check your finances. Before you even think about choosing tenants you need to have the following things in order:

  • Accounting and recordkeeping processes
  • Tax information, including interest, mortgage, and expenses
  • Rental property insurance policy (With the help of Vargas and Vargas, of course!)

It is a good idea to recruit the help of a financial professional to ensure that you have all of your financial bases covered, and that you’re not missing anything important.

Formulate your paperwork and policies.

Make sure that you check all of your paperwork over with a lawyer to determine if you are following the proper local, state, and national guidelines. A lawyer can also help you set up an LLC so that you aren’t personally responsible for problems with the property.

You will also need a set of ground rules before you start interviewing potential tenants. Will you charge a late fee for rent? What is your ruling on pets? What hours will you accept phone calls? How often will you be dropping by to check on the property? You can always amend these rules later, but knowing what you will allow and what won’t be tolerated will save you headaches later down the road.

Check on your property.

Later down the road, when you have your property set up and occupied, you need to make sure that you check on it every now and again. This is the only way to know for sure that the tenants aren’t destroying your place or ignoring important maintenance issues. Some landlords prefer to drop by unannounced so that they can see how their tenants live without being able to clean and prepare for a landlord’s visit.

If you’re sold on the idea of becoming a landlord, you need to call 617-298-0655 to speak with a Vargas and Vargas Insurance representative about your rental property insurance policy. We can get you a policy that will protect your new investment without causing you to budget for exorbitant insurance expenditures.