Why is my landlord asking for renters insurance of $500,000? I don’t have nearly that much stuff, and it’s none of his business how much personal property I have anyway. How can he even require that?
Read on after the quick video guide, and learn more about Fresno Renters Insurance.
Why Does My Landlord Want $500,000 Renters Insurance?
If you live in Fresno, the median listing price is around a quarter of a million dollars. The landlord is lending you the use of that asset for an extended period of time. If you were to accidentally cause a fire that destroyed the home, the landlord would have to rebuild it and would also suffer loss of income, but still have to pay his mortgage. In addition, the fire could spread to neighbors. Someone could be injured as a result. There are thousand other ways that fire could incur costs for which you and/or the landlord would be responsible.
It’s perfectly reasonable for the landlord to require you to carry $500,000 renters insurance, because he wants to make sure you’re able to cover not only the cost to rebuild the asset, but also the additional costs that would be associated with that loss. The landlord is lending you the asset in return for maybe one-tenth of its value (total rent over a 12 month lease) if not less than that figure. That’s not enough money to make it worse allowing the home to suffer a loss. That’s why he wants you to have enough renters insurance to cover the loss and then some.
How Much Will It Cost To Get $500,000 Renters Insurance?
The national average price of renters insurance is just $187.00, according to the III. That works out to as little as fifteen dollars per month. The vast majority of families can budget renters insurance easily at those prices.
Additionally, it's important to note that renters are at a significantly higher risk of experiencing loss than homeowners. Renters occupy roughly one third of total housing stock in the country, and yet they are fully fifty percent more likely to experience theft than homeowners, according to the Bureau of Justice Statistics.
It only costs a few dollars a month to protect your family, and this cheap renters insurance is a great way to mitigate the additional risks that come with being a renter.
You might pay a dollar or two more a month than the average price of renters insurance in California to get $500,000 renters insurance. You’re probably looking at a fifteen or twenty dollar per year difference to increase your liability coverage to that level. But by doing so, you’re not only increasing the coverage, you’re also increasing the length of time the insurance company would defend you in the event of a loss.
Your insurance company has a duty to defend you against a claim that would be covered by the policy. However, that duty only extends until the policy limits have been paid against a judgement or settlement of that claim. Once the policy limits are exhausted, there is no longer a duty to defend you. With $500,000 renters insurance, there’s a much greater likelihood that the policy limits will not be exhausted by the claim in question. That means you get the benefit of a defense paid for by the insurance company until the entire matter is settled, or until they’ve paid out $500,000.
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What Does $500,000 Renters Insurance Cover?
$500,000 renters insurance refers, of course, to the amount of liability coverage on your Fresno Renters Insurance. Very few people need $500,000 of personal property coverage and those people tend not to be renters. Your policy will cover bodily injury or property damage that you cause to anyone who is not an insured, up to $500,000.
That’s right, the $500,000 renters insurance isn’t just there in case you burn down the home or apartment. It’s also there if you ride your bike into a pedestrian, or spill your coffee on someone, or if your child has a friend over and that child is seriously injured while in your home. The coverage is there for anything negligent you do that causes one of those types of losses, and that gives you the ability to live your life with much less concern.
For the sake of example, $500,000 renters insurance would cover an accidental kitchen fire that you started… That burned down the entire home… And melted the siding on the home of the neighbor… And the injuries of the passing child on a bike who turned his head to look at the fire and fell off his bike… And the many other incidental costs that come with such a loss.
Don’t forget that it also comes with loss of use coverage to pay for you to stay somewhere else after the fire, personal property coverage to buy you new property to replace what was lost in the fire, and even medical payments to others coverage to make a good faith payment that doesn’t admit fault if someone else was injured as a result of the loss, but not seriously. There are other ways that your policy protects you and your family, as well. Younger children are generally even protected against acts that might have been intentional, but where they didn’t understand the consequences because of their age. That protection can be quite valuable, since curious kids can cause a great deal of damage.
How Can I Get $500,000 Renters Insurance?
$500,000 renters insurance is easy to get. Even though the liability limit is higher than what some people might normally purchase, it’s still available online. You can get $500,000 renters insurance online cheap in just sixty seconds, the same as any other renters policy. Just click above. The questions are easy, the process is fast and intuitive, and the policies are backed by highly rated underwriters.
If you have additional questions about your $500,000 renters insurance, Effective Coverage offers personal insurance experts by phone who are happy to take all the necessary time to answer your questions and get you the coverage that you need. When dealing with higher liability limits, many people have questions and Effective Coverage understands this. That’s why we’ve made it easy to speak with a real person who’s an expert in renters insurance.
Whether you’re the kind of person who wants to get it done now online and be done with it, or you want to ask detailed questions and get solid answers from experts, Effective Coverage has the renters insurance solutions you need. Just call (800)892-4308 or click to get covered - whether you need California renters insurance quotes online or coverage anywhere else!
Effective Coverage offers the nation's only completely mobile platform to quote and purchase renters insurance right from your phone or tablet in just one minute. Get an online renters insurance quote today and protect your family.
Photo Credit: Bob Howl Turkey 500,000 Lira A CC BY SA 2.0