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Landlords must research many things before they start renting property to tenants. For example, they'll need landlord insurance and financial institutions to hold all the funds they get. In fact, they may also want to look into renters insurance providers for their tenants.
Though tenants have the right to research their own renters insurance companies, it's helpful when all the information is available to them. Likewise, landlords might require Arizona renters insurance because it can protect them in certain situations.
You will learn more about why renters insurance in Arizona is beneficial for both tenants and landlords in this article.
What Is Arizona Renters Insurance?
Generally, renters insurance covers many different unexpected events or covered losses. Tenants will usually get personal property coverage, liability protection, additional living expenses, and many other perks.
However, many renters insurance policies are quite broad, so it's important for renters to know exactly what they'll receive when they sign up for protection.
Average Cost of Renters Insurance in Arizona Per Year
The average cost of renters insurance in Arizona can vary based on many factors. These include location, renter's history, and much more. However, customers will usually see renters insurance rates that are about $90 per year or $8 per month. Each company is different, so it's wise to compare quotes for Arizona renters insurance before signing up.
How Much Does Arizona's Renters Insurance Cost (Based on Popular Cities)?
MoneyGeek evaluated renters insurance premiums for seven cities and found that Lemonade renters insurance was the least expensive in four of them. Here are the cheapest renters insurance rates for those seven cities:
- Tucson - $95/year
- Scottsdale - $66/year
- Phoenix - $114/year
- Mesa - $70/year
- Glendale - $95/year
- Gilbert - $64/year
- Chandler - $69/year
Is Renters Insurance Required for Arizona Residents?
There's no legal requirement for renters to carry renters insurance policies, but many landlords are now demanding that tenants have it. Likewise, tenants must abide by all the terms stated in the lease. If you require renters insurance in Arizona, tenants must get it.
Typically, the landlord will require proof that tenants have renters insurance in Arizona. You can make them show the policy information before they sign the lease. Likewise, you may request evidence for renewals as well.
Landlords want to ensure that renters have enough liability protection within the renters insurance policy. They might check for personal property coverage, as well.
As the landlord, you're also allowed to be kept in the loop. Ask tenants to make you an interested party on the renters insurance policy to get notifications of cancelations and changes.
What Does Renters Insurance Cover in Arizona?
Once you know that renters insurance in Arizona is beneficial for the tenant and you, it's time to learn what most renters insurance policies cover. They include:
- Personal Property Coverage - Overall, personal property coverage will protect the renter's stuff, even if they're traveling or not in the apartment. It typically covers damage from named perils and theft.
- Liability Coverage - If the tenant's friend falls over a coffee table and breaks it, the renters insurance policy will cover this. It's called liability coverage, and it will protect anyone on the policy who causes damage to another person's property.
- Loss of Use - If the premises suffered a fire or windstorm, the tenants might have to live elsewhere for a while. Renters insurance in Arizona often includes loss-of-use coverage to reimburse the tenant for hotels, food, laundry services, and much more.
- Medical Payments - If a tenant's guest falls down the stairs, renters insurance in Arizona will cover the medical costs for their injuries. Likewise, it covers the tenant if they hurt someone outside of the unit. However, it won't protect the tenant and other people residing in the place if they're injured.
Though Arizona rarely sees tropical storms, tornadoes, and hurricanes, it is prone to earthquakes, extreme heat, wildfires, and flooding. Most renters insurance policies won't cover them with the basic coverage. Therefore, renters might need to get additional or separate policies.
What Does Renters Insurance in Arizona NOT Cover?
Though renters insurance companies will protect many things, they're only responsible for covering what's listed in the policy. Therefore, tenants should read everything thoroughly and ask questions to know what's covered.
How to Choose the Right Policy
When searching for the best renters insurance company, tenants should focus on these factors:
- Insurance Rates - Make sure each company's price compares well to others in the area.
- Customer Service - Tenants who must make a claim want to do so with ease. Customer service reps will likely help them, so they'd generally prefer a positive experience.
- Coverage Options - Does the insurance company have various coverage options that will be useful to the renter?
Available Discounts in Arizona
It's possible for tenants to lower the renters insurance premium they pay when they choose a company offering discounts. These can include:
- Lower rates for higher deductibles
- Savings for specific safety devices
- Autopay discounts
- Claim-free discounts
- Multipolicy bundling
- Loyalty discounts
How Does Renters Insurance in Arizona Protect the Landlord or Property Manager?
Landlords are allowed to require tenants to buy renters insurance and keep it as long as they're under a lease. Did you know that it can protect you as the landlord by:
- Lowering Your Risk of High Insurance Premiums - After filing a claim against the landlord insurance you invariably have, the insurer could cancel your policy or raise your premiums. If the tenant has renters insurance, it might cover some or all of your loss.
- Allowing Pets - Most landlords don't want to allow pets because of the damage they often bring. However, if tenants have renters insurance with dog-bite liability and coverage for property damage, you can put in a claim against them to protect yourself from problems.
- Protect from Property Damage Claims - If a tenant isn't at fault and now has damaged property, they might sue you to recoup their money. However, their renters insurance will probably cover the cost.
- Relocation - What happens if there's a fire in the building? Your landlord insurance would cover the structure and your possessions. In Arizona, there are times when a landlord will have to pay for temporary relocation services, but a tenant's renters insurance policy will generally cover that!
Top 5 Best Renters Insurance Companies in Arizona
It can help to understand the cheapest renters insurance companies available in Arizona. You can explain those options to your tenants or show them this article to help them decide which brand to choose. Here are the top choices:
1. Lemonade Renters Insurance
Lemonade renters insurance is an excellent choice because it's modern and offers customers a hassle-free claims process. In fact, the mobile app is user-friendly, and tenants can track and file claims effortlessly.
Overall, Lemonade could be the best cheap renters insurance because it offers 24/7 customer service through its AI-powered system. Some say it isn't as comprehensive as others, but it's wise to remind tenants to read through policy offerings to know what's covered.
2. Allstate
Though it's not a cheap renters insurance company, Allstate is a long-standing and reputable brand with policies that feature reasonable prices. Likewise, renters have various endorsement options.
Generally, Allstate features a smartphone app and great customer service, and it's available in every state. Though there aren't many discounts, retired seniors at least 55 years old who rent can get a unique discount.
3. State Farm
State Farm is a top renters insurance company for tenants who simply want to meet your requirements as the landlord or are on a budget. While it doesn't offer as many discounts as other brands, it does have impressive coverage for possessions and four different endorsements to provide comprehensive coverage.
The endorsements include business liability and property, identity theft protection, waterbed coverage, and high-value personal property, such as artwork and antiques. Plus, it has a network of local agents to provide that personal touch many renters prefer.
4. American Family Insurance
Though it doesn't offer the cheapest renters insurance possible, American Family is known for its great customer service. In fact, policyholders get round-the-clock assistance when needed.
While there are a few registered complaints through the Better Business Bureau, most customers are content with the support and quality of insurance products they receive.
Overall, the company will help renters connect with agents to get answers to questions and file a claim. Likewise, tenants can use the portal for claims to receive a hassle-free experience after a loss.
There are a few endorsements to consider, as well. American Family offers home-based business protection (property and liability), traveler's protection, pet insurance of up to $1,000, and identity theft protection.
5. Nationwide
Nationwide won't offer the cheapest renters insurance, but it's great for tenants who want extra coverage and personalization. Its policies have many options for more coverage, such as protection from floods, earthquakes, and theft. Other endorsements include special liability limits, building ordinance/law, identity theft protection, limited water backup, and brand-new belongings.
Brand-new belongings offers more coverage for the tenant's personal property and doesn't factor in depreciation. Therefore, they can get reimbursed for the item as if they'd bought it that day instead of a month or year ago.
Likewise, tenants can reduce their premiums if you have installed smoke detectors, burglar alarms, fire alarms, or other safety equipment in the apartment or home.
What Is DoorLoop?
DoorLoop offers property management software for all types of landlords, and it's all-inclusive. Therefore, you can have residential or commercial properties or even a mixed-use portfolio. Regardless, you could use DoorLoop to help with:
- Automatic rent collection
- Management of online maintenance requests to reduce calls/texts from tenants
- Free and customized website to list vacancies on Trulia or Zillow (and allow tenants to apply online)
- Online tenant portals for payment collection and maintenance requests
- Much more
This is quite exciting! If you're ready to see what DoorLoop can do for you, schedule your free demo and learn more about the software!
Why Work with DoorLoop
Most tenants don't want to deal with buying renters insurance, but they will do so if you require it in the lease. Be helpful and show them this article to ensure they understand what to look for and the benefits it offers.
Likewise, DoorLoop is here to help! Tenants can directly apply for renters insurance on the tenant application or through the tenant portal, which is either powered by Lemonade or SURE. Plus, they can submit their own preferred company through the portal, making their lives easier. Check it out here!
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