Everything You Should Know About Renter’s Insurance

What is renter’s insurance?

Renters insurance is essentially financial protection for you and your stuff. It’s like home owner’s insurance for tenants. However, it is much cheaper because it only includes what is inside the home. Some landlords require it, however often it is up to the tenants if they want to purchase it.

Personal Property Coverage

Most policies will cover property that has been stolen or damaged by fire or vandalism. If you live in an area that is prone to flooding or earthquakes that will be a separate policy.
Nearly everything you own will be covered. Tv, Jewelry, Furniture, Clothes, etc. Things it doesn’t cover include, car, pets, roommates’ stuff.
Insurance companies will reimburse you in one of two ways. Replacement Cost policies which will pay for the cost of replacing your stolen or damaged things with new ones. For example, if your bike was stolen, they will pay the cost of replacing your stolen bike with the cost of a new one. Then there are Actual Cash Value policies that pay to replace your things based on the value of them at the time of the incident. So, as you can guess the replacement policies will be more expensive.

Liability coverage


The second type of coverage you will get is liability coverage. Which protects you if someone gets injured in your rental and sues you. It sometimes covers medical payments if someone is injured in the property.

How much does renter’s insurance cost?

Renters insurance is one of the most affordable policies you can buy. However, the cost varies by a few different factors. But the average cost I about $180 a year. According to the insurance agency group it is typically around $15 a month.

What can influence the cost of your policy?

• Your location: In general, if you live in a location that is prone to sever weather you can generally expect your rate to be slightly higher.
• Your credit score: In general, the higher your credit score the lower your rate will be.
• Amount of coverage: The more coverage you want the higher your rate will be. This depends on how much you own and the value of the items.
• The safety features installed in your unit: If your unit has a security system such as a house alarm, cameras, etc. already included or one that you choose to place, this could lower your monthly payments because having that amenities will reduce your potential risk of having a robbery.

The Need For Rentals Is Rising In 2021

 Are you in the know on what is currently happening in the real estate market here in Texas? Did you know that most young families and young professionals are turning to renting rather than buying? Available homes for purchase are also few and far between making many choose to rent long term. 

This means that rental properties are needed more than ever! So this may be your perfect time to invest in real estate! Do you have a home that could be used for your rental property investment already? Or have you found a home for a steal? Well you are already one step closer to making money off a real estate investment! Have you been worried about not making money, or running into trouble getting it leased out? Good news! The market here in 2021 makes it the best year for you to start your investment because those two factors are very unlikely to happen at this time.

Let me explain. Young families/ professionals who are just starting out may not have the cash to put a large sum of money down when buying a home. And as everyone knows Texas has become a very hot market in the past couple of years. This alone has caused housing prices to rise and these young people often times are getting out bid. Along side the rising cost of preexisting homes, housing materials prices are also at an all time high which has turned many away from building homes also. These factors are making it next to impossible to purchase a home. So what are these people to do. I’ll tell you. RENT!

Considering investing yet? Want more information on how to start? Ready to take the plunge? Visit our website or give us a call today so we can help you make the most off your investment! www.allcountygroup.com