The idea of eviction for any reason is a nerve-wracking one and an unfortunately real worry for many renters. There are a range of reasons a renter may face eviction—one of them including failing to carry renters insurance.
While renters insurance isn’t legally required by state or federal laws, most landlords will require tenants to carry renters insurance as part of their rental agreement. If you break your rental agreement, such as dropping your renters insurance, your landlord has the authority to issue an eviction notice. No landlord should evict a tenant without proper notice, however.
Be sure to read your rental agreement carefully. If there is no written requirement for renters insurance, your landlord cannot evict you for not carrying a policy. Also check your lease annually to make sure changes have not been made. For example, you may not have needed renters insurance when you moved in, but an update can require you to carry renters insurance later on down the road.
The repercussions for not carrying renters insurance isn’t always eviction, however. In some cases, landlords may charge a monthly penalty, some of which go to being covered under a master liability policy or waiver program. This is to ensure that the landlord and other tenants will be covered in case you or a family member cause bodily injury or property damage. It can also help if someone is injured inside your rented home or apartment unit.
When Do I Need Renters Insurance?
Most rental agreements state that you must have renters insurance by the date you are set to move in. This way, you are covered as soon as you step foot inside your new rental space. You will likely need to send proof of your renters insurance to the leasing department or provide it on the day of move in before you are given the keys to your apartment or home.
It is important to remember that you are required to carry renters insurance for as long as you are under a rental agreement. If you purchase renters insurance to move in but cancel the policy at a later date, this is a violation of your rental agreement and can lead to an eviction notice.
Is Renters Insurance Expensive?
Reasonably, tenants worry about saving money when it comes to extra expenses. Renters insurance is relatively inexpensive, however, often costing around the same as your average streaming service. There are different factors that can affect your renters insurance premiums, however, and understanding those factors can help you save money on your renters insurance policy.
Such factors include:
Location
Different aspects of the area you will be living in can affect the cost of your renters insurance. This includes your proximity to a fire station, cost of living in the area and crime rates. High crime rates and a substantial distance from a fire station can mean higher renters insurance premiums.
Credit Score
Your credit score may not be a concern when it comes to renters insurance if you have already been approved for an apartment, but it can still play a role in how much you pay for coverage. Low credit scores may mean higher renters insurance premiums, so it is important to do what you can to increase your credit score before moving or purchasing a policy. You can do so by paying off debts and credit cards.
Personal Property Covered
Part of a renters insurance policy is designed to cover your personal belongings in case they are lost or damaged due to fire, wind, hail, lightning, smoke, theft, vandalism and other incidents. Of course, this means that the value of your items and number of insured belongings can affect how much you pay for renters insurance. It is important to have the right amount of coverage to replace your belongings after a disaster, however. Certain expensive items such as jewelry, furs and art have limited coverage under a basic renters insurance policy and may need additional policy floaters for coverage.
Pets
Pets are generally covered by the liability side of your renters insurance policy in case they cause bodily injury or property damage to someone else. Certain pets may be more costly to insure, however, due to their destructive or intimidating nature. Some dog breeds especially are considered “riskier” than others and cost more to protect under renters insurance. These breeds may include German Shepherds, pit bulls, huskies and more.
Deductible
Your deductible is flexible depending on your policy and insurance needs. A renters insurance deductible is how much you may pay out of pocket when it comes time to file a claim. Having a higher renters insurance deductible can save you money on monthly premiums, but it also means paying more out of pocket if you have to file a claim.
Be sure to speak with an insurance agent if you have any questions about your renters insurance policy or the requirements on your lease.