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Landlords have to consider many things, such as keeping up with maintenance and getting landlord insurance to protect the building. However, it won't cover the tenant's personal belongings. They would need renters insurance for that.
Today, you will learn all about renters insurance coverage so that you're prepared to answer tenant questions. Plus, you'll understand more about it and why it's beneficial for you and them.
What Is Alaska Renters Insurance Coverage?
When tenants rent a house or apartment, that is their home. They want to protect it, and renters insurance will help them do that. It often offers personal property, additional living expenses, and liability coverage, which pays out after a covered loss or injury to another.
Average Cost of Renters Insurance in Alaska Per Year
In Alaska, the average monthly premium is about $20, which equals $250 per year. This is about $91 more than your national average, which is $159/year.
Typically, the price a tenant pays depends on how much coverage they need, where they live, and so much more.
How Much Does Alaska Renters Insurance Cost (Based on Popular Cities)?
According to ValuePenguin, renters insurance rates can be higher or lower, depending on the city in which the tenant lives. Here's a look at the top cities:
- Sterling - $291/year
- Sitka - $259/year
- Kodiak - $268/year
- Juneau - $255/year
- Fairbanks - $263/year
- Anchorage - $266/year
Is Renters Insurance Required in Alaska?
Alaska law doesn't mandate renters insurance. However, landlords and property managers can require tenants to buy a policy. This gives them peace of mind, but it also helps the tenants protect their items against various covered events.
What Does Renters Insurance Cover in Alaska?
Alaska is a cold place to live, but it is beautiful. However, it's prone to blizzards, ice storms, landslides, floods, earthquakes, and more. In most cases, a standard renters insurance policy will protect tenants from these things, but earthquake damage and floods might be excluded.
Here are the things that renters insurance covers in most cases:
Personal Property Coverage
Every renters policy will have personal property coverage, which covers the loss of the tenant's belongings if they're damaged or lost inside/outside the house.
Medical Payments Coverage
This pays the medical expenses if someone is injured in the tenant's unit.
Loss of Use Coverage
Also called additional living expenses, loss-of-use coverage reimburses the tenant for food and temporary housing. It's used when their rental is uninhabitable after a covered loss.
Personal Liability Coverage
Liability coverage can protect tenants from financial loss if they're obligated to pay for a person's injuries and damage to other people's property. This is if they're found to be at fault.
What Does Renters Insurance in Alaska NOT Cover?
In most cases, renters insurance won't cover these things automatically:
- Damage from floods and earthquakes
- Loss from identity theft
- Installed equipment in a vehicle, such as a stereo system
- Certain valuable items, including expensive jewelry or electronics
How to Choose the Right Renters Policy
You can give tenants advice about choosing the best policy for their needs. Here are a few tips:
- Compare Renters Insurance Quotes - Getting multiple renters insurance quotes will help tenants find the best deal with the right coverage options.
- Coverage Options - Most companies offer similar basic policies. However, tenants might need extra coverage to stay protected. They should check for add-ons and higher policy limits.
- Customer Service - Filing a claim can be difficult, and people are upset. Therefore, it's best for tenants to focus on customer service before they need to use the insurance.
Available Discounts in Alaska
Every company offers discounts, but they vary based on the brand. Here are some of the top choices:
- Multipolicy discount
- Senior discount
- Claims-free discount
- Protective device discount
- Pay-in-full discount
- Autopay discount
- Paperless discount
How Does a Renters Insurance Policy Protect the Landlord or Property Manager?
Knowing how tenants having renters insurance coverage will benefit you is a great thing. While you understand how it helps them, you need to focus on your needs.
Here are the ways that renters insurance can help landlords:
- The tenant might try and sue you if their personal property is damaged and they have no insurance.
- The tenant's guests can sue you if they are injured while in the tenant's unit and if their property is damaged. However, renters insurance will cover those expenses for you and the tenant.
- Some policies will cover property damage and liability caused by pets. Tenants should look into this thoroughly before selecting a company to be sure.
Top 5 Best Cheapest Renters Insurance Companies in Alaska
If you know the best renters insurance companies, you can give that information to your tenants. Plus, you can determine if they're worthy to rent to because they have used one of the top choices.
Here's a look at the best five options:
1. State Farm Renters Insurance
State Farm is one of the cheapest renters insurance companies available in Alaska. It costs about $13 per month for a policy. Likewise, tenants can expect excellent customer service from this brand. The company doesn't receive very many complaints.
Overall, State Farm offers excellent coverage. Plus, tenants can raise liability coverage limits and even add identity theft and earthquake protection. Still, there aren't as many add-ons here as with other insurers.
2. Allstate Renters Insurance
Tenants who want the cheapest renters insurance coverage might want to consider an Allstate policy. It's just $11 per month in most cases!
Plus, if tenants have a vehicle, they can get the bundling discount to save even more money. However, customer service is lacking here. In fact, Allstate receives twice as many complaints as its competitors, so it might not be ideal if tenants think they'll need to file claims.
3. SURE Renters Insurance
SURE is one of the cheap renters insurance companies, but it offers many coverage options. Tenants will usually get loss-of-use, personal property, personal liability, replacement cost coverage, and much more.
Plus, the plans are tailored to meet each tenant's needs. There are many endorsements available, and everything can be done online through the app or website!
4. Global Credit Union Renters Insurance
Global Credit Union offers many services, and it's also a renters insurance company. Tenants will work with an agent to discuss their needs and get advice. Plus, they will determine which policy will work best for them.
Prices can be slightly higher here than with other brands. However, tenants can bundle many things together, including life insurance, car insurance, and more!
5. The Insurance Group of Alaska Renters Insurance
The Insurance Group of Alaska is another great renters insurance company. This independent insurance agency serves those in the state, though it mainly focuses on Anchorage.
In a sense, tenants can bundle many policies together, which will save them money and ensure they are protected against almost anything. Tenants can learn more here.
What Is DoorLoop?
DoorLoop is a property management software designed for all types of landlords. Whether they manage commercial, residential, or mixed-use portfolios, DoorLoop will help them:
- Manage their rental portfolios.
- Manage accounting tasks.
- Manage maintenance requests online.
- Collect rent automatically.
- Offer an online tenant portal.
- Enjoy a free, custom website for tenants to apply and for landlords to market vacancies online.
It's easy to learn more about DoorLoop. Schedule a free demo today!
Why Work with DoorLoop
Do you want to require tenants to get a renters insurance policy? DoorLoop makes it easy. They can submit the company themselves and apply directly online through the portal or tenant application. Everything is powered by SURE in this state. Learn more about it here!
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