Renters Insurance OKC is one of the most affordable types of insurance available. However, many renters are unaware of how it works. According to the latest January 2021 study by the National Association of Insurance Commissioners, The average homeowner’s insurance premium rose by 3.1% in 2018, following a 1.6% increase in 2017.
It is very simple. If you rent your home, you need renters insurance. You might wonder if renters insurance is worth it or not. There are more benefits than people understand when it comes to the renters’ insurance policy. You can choose specific aspects of your policy, depending on the coverage that is beneficial to you.
It’s easy to think that rental property owners have it good, but being a landlord has its share of responsibilities and possible liabilities, too.
For example, landlords worth their salt must spend for rental property insurance, which tends to be more expensive than a standard home insurance policy. With this type of coverage, landlords can easily repair any damage within the property they’re renting out.
Their tenants’ belongings, however, are an entirely different story since rental property insurance does not cover them. Still, some tenants could resort to filing a lawsuit against their landlords for damaged belongings within the rental property.
To sidestep this risk, most landlords require tenants to obtain renters insurance, and rightly so. You can also get help from property management OKC. Learn more about what OKC Home Realty Services does to help our clients.
What Renters Insurance OKC Covers?
As its name suggests, Renters Insurance Oklahoma provides tenants coverage for the contents of the house, apartment, dormitory, or condominium they’re renting in the event of damage or loss due to a covered peril.
As with a standard home insurance policy, basic renters insurance coverage will compensate tenants for their clothing, appliances, furniture, smartphones, and other personal property damaged or lost due to covered perils, which may include:
● Fire and Smoke
● Windstorm and Hailstorm
● Vandalism and Explosion
● Riot or civil disturbance
● Damage caused by vehicles and aircraft
Oklahoma Renters insurance doesn’t cover damage or loss due to earthquakes and flash floods. The same goes for vermin infestations.
Recommended Article: Landlord Insurance vs Homeowners Insurance Policy
Why should you get Renters Insurance OKC?
Renters Insurance OKC can help you repair or replace your property after any damages. Renter Insurance provides coverage for an accident at your apartment. Policies usually have very affordable annual premiums. And keep in mind that, Tenants are not covered by the owner’s Insurance. Below are the benefits of renters insurance.
- Covers renter’s legal expenses
- Covers Additional Living Expenses
- Covers Damage Renter’s Cause
For a landlord, there is always the risk of tenants holding them liable if they get hurt within the property, especially if the former’s negligence or inaction about, say, a loose handrail on a stairway or an uneven floor led to the latter’s injuries.
But what about injuries suffered by a guest due to the renter’s negligence or inaction, like leaving their kids’ toys around and causing slip and fall accidents?
Fortunately for renters, there is another similarity between renters insurance and homeowners insurance: the liability protection component.
So, How can liability coverage protect you as a renter? If a renter’s visitor suffers an injury within the renter’s rented property, that person’s medical expenses will be shouldered by renters insurance through its liability portion. That’s what renters insurance is worth it for.
Renters insurance OKC covers the renter’s legal expenses in case of a lawsuit, as well as any money a court may award to the injured party.
Should the renter or any member of his household cause damage to a neighbor’s property, renters insurance will also kick in and cover everything up to the policy’s limits.
Additional Living Expenses Coverage
The similarities between renter’s insurance and home insurance don’t stop with liability protection.
Many renter’s insurance policies also cover additional living expenses or ALE, just like standard home insurance coverage.
Renters can make use of the ALE coverage if the place they’re renting is temporarily uninhabitable because of damage caused by a covered peril.
While a landlord’s rental property insurance will take care of repairing or rebuilding the dwelling itself, renters insurance will cover the tenant’s expenses who will have to stay temporarily at a hotel.
Aside from hotel bills, the ALE portion of a renters insurance policy will also pay for a tenant’s meals, laundry, and other expenses until the property they’re renting is fully restored.
It Covers Damage Renter’s Cause
Typically, any damage caused by a tenant to a rental property gets covered by their security deposit.
Sometimes, however, the security deposit is not enough to cover the damage.
In such cases, landlords sue tenants for damages not covered by the security deposit, and that’s where renters insurance comes in.
So, if a tenant causes water damage because of an overflowing bathtub or accidentally breaks a window, their renter’s insurance policy should cover it.
If you’re a rental property owner, it makes a lot of sense to require potential tenants to show proof of having renters insurance coverage before finalizing any rental agreement. Do that, and you’d be doing yourself and your tenant a huge favor.
Most Frequently Asked Questions About Renters Insurance
What is Renters’ Insurance?
Renters’ insurance is also called tenants’ insurance. This insurance policy includes three types of coverage: Personal property, liability, and additional living expenses. Personal property is damaged or stolen, medical and legal bills if found liable for damaging someone’s property.
What is the purpose of renter’s insurance?
Renters insurance guards your personal property against unexpected circumstances such as theft, fire, or sewer backup damage. The insurance company will pay you for lost or damaged possessions. It also protects you from responsibility if someone is injured on your rental property.
Is renters insurance worth it?
Yes. renters insurance is always worth it If you’re a tenant. Even if it’s not required by your landlord. For an affordable price, renters insurance will protect you against any personal damage to your property, additional living expenses, and any potential legal liabilities.
What is not covered by renters insurance?
Some of the most common risks that are not covered by renters insurance include floods and earthquakes. These are the natural cause. When damage or theft of your property is covered by your renter’s insurance, you can make a claim for reimbursement up to your policy limits.
What are the types of Renters Insurance Coverage?
There are 3 types of Renters Insurance. Personal Property Coverage helps pay to replace your belongings if they’re stolen or damaged by a covered risk. Liability Coverage includes medical and legal bills and protects you from responsibility if someone is injured on your property. And Additional Living Expenses.
Why do landlords require renters insurance?
Yes. Not compulsory but, Renters Insurance benefits the tenant to minimize their risk and protect their property from any damages. It’s a way ensure respect of property by both parties, keeping the rental in tip-top shape.
Does Renters Insurance Cover Theft?
If your renters insurance policy includes personal property coverage, it may help pay to replace your stolen items. This coverage typically protects items stolen after a break-in at your rental property or even items stolen outside of your rental. For example, if your personal property (such as a gaming system) is stolen from your car, the personal property coverage in your renters policy may help pay to replace it.
Can Oklahoma landlords require renters insurance?
Landlords can require renters insurance as a condition of leases. They ask tenants to have a minimum amount of insurance coverage. However, Landlords in Oklahoma cannot require tenants to buy renters insurance.
What do Oklahoma renters cover?
Many renter’s insurance policies also cover additional living expenses or ALE, just like standard home insurance coverage. It also covers the renter’s legal expenses and the damages that are not covered by a security deposit.