How Does Renter’s Insurance Work?

renter's insurance

Many people do not think having renter’s insurance is necessary. While there may be several reasons for this, a common misconception is that their landlord’s insurance coverage will serve as a buffer to loss of damage to their personal belongings. This is not the case.

As such, when renting in Arizona, you should consider getting renters insurance. As you will see below, this helps cover for any unexpected financial responsibility you may face while renting in addition to many more benefits you may be eligible for when purchasing additional coverage.

What is Renter’s Insurance? How Does It Work?

Renter’s insurance is also known as tenant insurance. Renter’s insurance in AZ is a type of liability insurance and will protect your loss of personal property as well as from injuries and medical payments caused by named perils, whether they be brought about by weather or non-weather circumstances.

These insurance products also give individuals some of the benefits of homeowners insurance without the added cost of insuring the structure of the building. This structural insurance coverage is already in place through your lessor.

So what does a policy like this actually cover? Most importantly, the movables that you own in your rented space—computers, electronics, furniture, bikes, even your clothes and other belongings. Renter’s insurance will cover you from losses caused by events listed in your insurance policy such as: fire, storm, hail, lightning, flood, freezing, theft, vandalism, riot, and many more. Your renter’s insurance also covers expenses incurred when your dwelling becomes uninhabitable. Thus, the insurance company shoulders your expenses for repairs and alterations on your dwelling.

Finally, there are policies which even cover your hotel expenses, including your meals, if you need a place to stay while repairs are made on your rented place.

If you’re wondering what is covered, you can refer to your actual insurance policy for a complete list of covered losses.

Coverage Options

A renter’s insurance policy in Arizona has two types of coverage options to protect your personal property after damage.

The first one is Actual Value Coverage (AVC). This means that in the case of damage, you are repaid the depreciated value of your lost property.

The second option is Replacement Value Coverage (RVC). Here, you are paid for the replacement cost of a new unit. Experts say that RVC costs about 25% more than the AVC policy.

As a form of liability insurance, renter’s insurance policies in Arizona cover the full amount or a portion of your medical expenses and those of the people who are injured in the event or accident. Depending on the extent of your coverage, this may also extend to coverage for when your guests suffer from an unexpected mishap.

How Much Does Renter’s Insurance Cost in Arizona?

Many people think that renter’s insurance is not in their budget or is not a necessary expense. But it is! It really is!

According to the National Association of Insurance Commissioners, the average policy cost for an apartment is $184 per year, or about $15 per month. The coverage for such a policy ranges from about $30,000 to $50,000 for property, with a $500 to $1,000 deductible, depending on where you live. Such insurance also has $100,000 in liability coverage.

In a recent study, experts say that the average annual rate in Arizona ranges from $212 to $490. This covers a rental property of about 1,000 square feet of living space, $30,000 to $50,000 coverage and a liability insurance of $100,000.

Further, smaller cities and places just outside urban centers tend to have the best rates for renter’s insurance. The cheapest places for renter’s insurance in Arizona are located northwest of Phoenix and scattered across the southeast corner of the state.

Is Renter’s Insurance Required?

At present, no state legally requires renter’s insurance. However, there are certain lease contracts in which the lessors require the tenants to purchase renter’s insurance AZ for liability purposes.

Note that if your landlord acquired home insurance for the dwelling place, such policy covers only the building or the structure. The loss of your personal property inside the structure is not covered by your landlord’s insurance.

Moreover, your landlord’s insurance may not fully cover the damage for someone who is injured inside the dwelling place. Remember, a lawsuit of personal injury and the associated medical bills, can be very costly to you. Having renter’s insurance can certainly reduce such risk and can give you peace of mind.

At the end of the day, you have to realize that having renter’s insurance is an affordable way to cover your belongings and protect you and other people from unexpected damages and injuries.

Renter’s Insurance Casa Grande

You have the power and the ability to make things better after a mishap. You can protect the things which matter and which are important to you, and you certainly can have a new start after such mishap.

No insurance is simple. But as they say, with careful planning and with the help of your insurance agency, you can certainly make an informed decision in order to get a renter’s insurance in Arizona that gives you good coverage, and at the same time, keep your rate affordable.

Get a free quote from us today to protect your possessions. We’re happy to help answer any questions you have.

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