Choosing the Right Renter’s Insurance

Laura Baron's picture

Many Denver metro area landlords require tenants to have renter’s insurance, as it protects both you and them. A landlord’s insurance policy for the building you live in will not extend to your personal belongings, so it’s up to you to protect your property.

Why Is Renter’s Insurance a Great Idea?

The average premium for this insurance in the United States is under $200, but it provides a year of protection for over $10,000 worth of belongings. If you fail to get a renter’s insurance policy and a tragedy occurs, like a break-in or a windstorm, you would be the one financially responsible for replacing everything in your possession including expensive electronics, furniture and more. Your landlord’s policy also would not cover the cost of housing you elsewhere until repairs are completed, while your renter’s insurance policy could cover those costs.

What Does Renter’s Insurance Cover?

A standard renter’s insurance policy, known as an HO-4 policy, will reimburse the holder for the destruction or loss of personal belongings as a result of 16 events including:

  1. Fire or lightning
  2. Hail or windstorm
  3. Explosion
  4. Riot or civil incident
  5. Aircraft damage
  6. Vehicular damage
  7. Smoke
  8. Vandalism
  9. Theft
  10. Volcanic eruption
  11. Falling object
  12. The weight of sleet, snow or ice
  13. Accidental discharge of water or steam from an appliance, plumbing, heating, AC or an automatic sprinkler system
  14. A sudden burning, cracking or bulging of a hot water heater, air conditioner or automatic fire protection system
  15. Freezing of an HVAC system, plumbing or a household appliance
  16. Sudden accidental damage from an artificially generated electric current

The average policy doesn’t cover damage relating to earthquakes or floods.

How to Choose the Right Policy for You

  • Think carefully about the total value of your belongings. It’s better to purchase a policy that covers more than what you have to adjust for inflation over time.
  • Pay attention to what coverage is offered. Be prepared to pay a little extra if you are seeking something that includes flood or earthquake coverage.
  • Get quotes from several different providers to get an idea of what rates are most common in the Denver metro area.

Property Management for Denver Metro Area Landlords

All County Denver Metro Property Management offers all property owners competent and honest property management services. From rental market evaluation to tenant placement, we can assist with all of your needs. Our team of real estate professionals looks forward to hearing from you about how we can make your investment a stress-free asset and keep your tenants happy. Call us at (720) 575-6100 for a free quote.

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