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Landlords want to protect their investments, so they get landlord insurance. However, it doesn't cover the tenant's personal property or offer liability protection to them. Therefore, they should buy renters insurance to protect themselves.
However, what is Delaware renters insurance? What does it do, and how does it work? You should understand the concept yourself so that you can explain it to tenants and help them realize the benefits it offers. Let's get started!
What Is Delaware Renters Insurance?
Tenants who rent make their space a home, and they should protect it with renters insurance. Overall, it can be affordable and reliable. Usually, tenants have more peace of mind knowing that they have Delaware renters insurance coverage for any situation.
Overall, renters insurance is similar to home insurance. The policy protects the tenant, their belongings, and their living arrangements. Plus, it often includes other coverage options, such as guest medical protection, additional living expenses, and liability coverage.
Average Cost of Renters Insurance in Delaware Per Year
Typically, the cost of renters insurance in Delaware is about $129 per year, which is much less than the national average. However, the actual price tenants pay will depend on various factors, including their coverage needs. If they need higher coverage limits, they can expect bigger premiums.
How Much Does Delaware Renters Insurance Cost (Based on Popular Cities)?
The cost of renters insurance will also depend on where in the state the tenant lives. ValuePenguin has done the research to showcase the average prices based on the city.
These include:
- Wilmington - $217/year
- Newark - $219/year
- Georgetown - $234/year
- Elsmere - $220/year
- Clayton - $224/year
- Bear - $194/year
Is Renters Insurance Required in Delaware?
People often wonder: Is renters insurance required? No, state law doesn't mandate renters insurance. However, landlords and property managers can demand that tenants get the best renters insurance possible if it's in the lease.
Though landlords will have their own insurance policies, they won't cover the tenant's belongings. Therefore, it's wise for you to require them to have it.
What Does Renters Insurance Cover in Delaware?
Delaware often suffers flooding and coastal erosion. Likewise, tropical storms are possible. In most cases, even the best renters insurance won't protect from flooding and severe wind damage. Therefore, tenants might need separate coverage.
Here are the things renters insurance covers:
Personal Property Coverage
Personal property coverage will financially protect the tenant's personal belongings, including clothing, electronics, and furniture, against a covered loss from theft, water damage, or fire.
Loss of Use
Loss of use coverage is often called additional living expenses. It covers the cost of temporary housing if the rented place is uninhabitable after the covered loss.
Medical Payments
Medical payments coverage will pay for the injuries a person suffers at the tenant's rental, regardless of who was at fault. However, it won't protect the tenant and other policyholders.
Liability Coverage
Liability protection will help tenants if they're held liable for causing property damage or injury to another person. It will cover legal fees, medical expenses, and much more.
What Does Renters Insurance in Delaware NOT Cover?
Many times, renters insurance won't cover high-cost items. If tenants have valuables, they will need to be scheduled separately. Usually, this costs more, but some companies might provide it as standard.
Likewise, non-covered losses are a concern. Most policies won't protect against flood damage. Therefore, if the property is flooded and the tenant's things are damaged, they aren't replaced. Tenants can buy a separate policy if they worry about flooding.
Another thing to consider is that all policies have a coverage limit. This determines how much the insurer pays. If tenants don't get enough, they might have to pay out of pocket to get everything replaced.
How to Choose the Right Policy
It's important to let your tenants know how to select the best policy. Here are a few tips:
- Get Renters Insurance Quotes - Sometimes, companies have higher Delaware renters insurance rates than others. Getting quotes will help tenants find the best brand for their needs.
- Coverage Limits - It's important to understand the liability and property coverage limits within the policy. Sometimes, a standard policy offers limited coverage, so tenants might need to get endorsements.
- Customer Satisfaction - Filing a claim can be frustrating for tenants, so the claims process should be relatively easy. Likewise, they should be able to talk to a customer service representative when the need arises.
Available Renters Insurance Discounts in Delaware
The best renters insurance companies will offer some discounts, but each one is different.
Tenants can lower their renters insurance rates with these common discount options:
- Multipolicy discount
- 55 and retired discount
- Easy pay plan
- Protective device discount
- Claims-free discount
How Does the Cheapest Renters Insurance Policy Protect the Landlord or Property Manager?
Knowing what a renters insurance policy covers and doesn't cover is great. However, you might be wondering how it will help you as the landlord/property manager.
Here are the ways:
- You probably have liability coverage through your landlord's insurance. However, it won't extend to injuries a tenant causes. If they have renters insurance, the policy will help them.
- If a tenant suffers personal property damage and they don't have renters insurance, you might be accountable for repairing or replacing it. However, if they have a renters policy, it will cover their items so that you don't have to!
Top 5 Best Cheap Renters Insurance Companies in Delaware
Tenants usually want to find the cheapest renters insurance companies possible. You can give them these top picks to help them in their journey:
1. State Farm Renters Insurance
State Farm has the best cheap renters insurance available. Policies cost roughly $10 per month, which is just $125 annually. That's over 40 percent cheaper than the state average!
Likewise, State Farm has a strong customer service reputation. Those who get Delaware renters insurance here will find that they can contact a representative when the need arises.
Overall, the National Association of Insurance Commissioners claims that this insurance provider has fewer claims- and service-related complaints.
Though the prices and services are excellent, the policy offerings aren't as broad. Traditional things, such as medical payments and personal property, are available, but there's nothing else.
2. Allstate Renters Insurance
Allstate might not have the cheapest renters insurance, but it's not far behind State Farm. It costs $18 per month, which is $221/year. Plus, it's great for retirees because seniors who are retired and over age 55 will save up to 25 percent on the premiums.
However, some people dislike Allstate because it has fewer policy features. Though tenants can increase their coverage for valuables and enroll in the identity theft program, there's no water backup coverage, and the additional living expenses are somewhat low.
3. Amica Renters Insurance
People who focus on strong customer service and not the cheapest renters insurance will like Amica. The NAIC says that this brand gets 70 percent fewer complaints than similar companies.
Plus, it's an affordable option because rates start at $13 per month. However, there is a downside. Amica doesn't provide expanded coverage for flooding or water backup damage. Both of these issues can be a concern on the coastline.
4. Travelers Renters Insurance
Though it doesn't offer cheap renters insurance, Travelers is a great choice and has been around for many years. This shows financial stability, which means it will likely pay claims quickly and without a problem.
Likewise, Travelers has many add-on coverage options. These include decreasing deductible and replacement cost coverage. Plus, there are some discounts, though not as many as other brands provide. Still, it might work for some tenants!
5. Nationwide Renters Insurance
Nationwide could be the best renters insurance for people who believe they will need to file a claim. It ranks high for financial stability because it's been around for so long.
Though it's not as affordable as other brands, it does have unique coverage options, such as theft extension coverage. This will offer extended coverage for any belongings in watercraft, trailers, and motor vehicles.
There are so many add-ons and optional coverages, such as loss assessment and tools. Plus, tenants can find many discounts from this brand. They will save money while giving themselves peace of mind for unexpected events.
Likewise, the mobile app is easy to use, and people can manage their policies with ease. In fact, they can even file claims online, which is helpful and convenient for many tenants.
What Is DoorLoop?
DoorLoop is a property management software for all landlords. It's great for keeping track of people's renters insurance policies and works for mixed-use, residential, and commercial portfolios.
With it, you'll:
- Collect rent automatically.
- Manage your rental portfolios.
- Manage your maintenance requests online.
- Market vacancies on Zillow and Trulia, and allow tenants to apply with a free, custom website.
- Manage your accounting tasks.
- Offer a tenant portal.
There are so many benefits of using DoorLoop. You can learn more about it and schedule your demo today!
Why Work with DoorLoop
Requiring tenants to have a renters insurance policy is much easier with DoorLoop. They can apply directly on the tenant portal or the application, but they may also submit their own. You should learn more about it now!
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