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As a landlord, you may never need to buy renters insurance for your properties because you'll have different needs and coverages through landlord insurance. However, it might still be wise to require your tenants to have it for protection against unforeseen circumstances.
People seem to flock to Indiana because the state has many natural wonders. Tenants will enjoy picturesque waterfalls, unbelievable canyons, sandstone gorges, sand dunes, meandering rivers and creeks, spectacular caves, peaceful wilderness reserves, and so much more.
Overall, Indiana is a great place to live because of its cornfields, skywalks, town fairs, and excellent universities. Plus, the cost of living is lower than the national average.
However, most people won't focus on protecting their personal property and themselves from liability. This is where renters insurance in Indiana can come into play, but tenants rarely buy it without a push from the landlord. Today, you'll learn all about it and how it works.
What Is Indiana Renters Insurance?
Renters insurance is something that tenants get. This insurance coverage will protect them from various unexpected events, called covered perils.
Primarily, Indiana renters insurance includes liability coverage, personal property coverage, and additional living expenses, which come into play during many situations.
As the landlord, you need to understand what renters insurance is, how it works, and why you should require it. Then, you can explain that to your tenants so that they're aware of the benefits for themselves.
Average Cost of Renters Insurance in Indiana Per Month/Year
The average cost of renters insurance in Indiana will vary depending on many factors. It could be just $12 per month, which is $144/year, though the average per month is roughly $17 for most people. Therefore, it's about seven percent cheaper than the US average.
It's important to understand that the amount of personal property coverage tenants get will raise or lower the price they pay for renters insurance. For example, some tenants will pay $153/year or as low as $125/year, depending on the protection they get.
How Much Does Indiana's Renters Insurance Cost (Based on Popular Cities?
According to ValuePenguin, the average cost of renters insurance in Indiana varies significantly by the city. Those living in Mishawaka will likely see a lower price per month than those in Hammond or Gary. Here's a breakdown of the prices based on popular cities:
- Westfield - $194/year
- West Lafayette - $192/year
- South-Bend - $211/year
- Portage - $196/year
- New Albany - $224/year
- Mishawaka - $182/year
- Jeffersonville - $223/year
- Indianapolis - $233/year
- Hammond - $236/year
- Gary - $260/year
- Evansville - $195/year
- Columbus - $197/year
- Bloomington - $192/year
Is Renters Insurance Required in Indiana?
Many people wonder: Is renters insurance required in Indiana? No law says that tenants must buy it, but landlords can mandate it in their leases. Therefore, if you have a clause in your lease agreement mentioning renters insurance, tenants must get the minimum personal property and liability protection you list.
It's wise to include minimum coverage limits in the lease and be aware that most tenants will only get what you require in renters insurance. Therefore, it might not be enough to cover certain situations. You may wish to mention that to the tenants, but it's ultimately up to them to get enough coverage for their items and personal liability.
What Does Renters Insurance Cover in Indiana?
Knowing what renters insurance is and why it's needed now brings to mind what it covers. Every policy is different, but most renters insurance coverage includes these things:
- Personal Property Coverage - Personal property coverage protects the tenant's things, whether they're at home or not. Therefore, it will reimburse them for a stolen phone while at the store or ruined furniture from a burst pipe that caused water damage.
- Liability Coverage - If someone gets injured in the unit or anyone on the policy damages another person's things, the renters insurance company offers liability coverage to cover items like property damage and legal fees.
- Loss of Use - What would happen if disaster struck? When tenants can't stay in their rental because of a covered loss, such as a windstorm, loss of use coverage will reimburse them for additional living expenses, including temporary housing, hotel parking, laundry, food, and more.
- Medical Payments Protection - The renters insurance company covers medical payments if a guest is injured in their unit or if they hurt people on the property. However, a renters insurance policy rarely covers medical expenses if the policyholder or anyone listed in the policy is injured. This only works for guests and non-residents.
Though Indiana isn't known for significant disasters, it is prone to flooding. It's a landlocked state, but with the high snowfall rates and flat surfaces, spring floods are a normal occurrence.
Renters insurance policies generally offer water damage coverage if it happens inside the property, such as from a broken pipe. However, most plans don't provide flood damage protection. Therefore, tenants may need an endorsement or rider to give them additional coverage, which will typically cost more. Alternatively, they might need a new renters insurance policy for floods.
What Does Renters Insurance in Indiana NOT Cover?
All renters insurance policies are different. Tenants should go through each one carefully to understand what's included. In fact, it might be wise to talk to an agent and ask questions to get appropriate coverage.
How to Choose the Right Policy
When searching for renters insurance quotes, it's important to find the right policy. How do tenants do that? Here are a few tips:
- Make Sure It Covers All Personal Property - Tenants can take inventory of their items and the cost of replacing them all. This is the lowest amount of coverage they should seek.
- Compare Renters Insurance Rates - Every company has a base rate. Tenants can often request a higher deductible to lower the premium they pay. However, this means they'll pay more out of pocket before the policy kicks in.
Available Renters Insurance Discounts in Indiana
It's possible to lower renters insurance rates by using discounts the company offers. However, they vary between brands, so it's wise to research them before selecting a policy.
The discount options can include:
- Multi-policy discounts (bundling renters and auto insurance)
- Claims-free discount
- Discounts for fire safety and anti-burglary devices
- Welcome discount
- Smart home discount
- Discounts for paperless billing and auto-pay
- Generational discounts
- Pay-in-full discount
- Early enrollment discount
How Does a Renters Insurance Policy Protect the Landlord or Property Manager?
Landlords have the right to mandate renters insurance coverage for tenants living on the property. Before doing so, it might be wise to learn why you should. Tenants should want it for themselves, but it's helpful to let them know why you require it.
Here are a few reasons why renters insurance is helpful for landlords and property managers:
- Protects the tenant's belongings
- Identifies reliable and trustworthy tenants
- More liability protection for pet issues
- Covers relocation costs so that the landlord doesn't have to
- Protects the landlord from personal liability issues
- Reduces lawsuit risks for the landlord
Tenants don't have to pay tons of money. You'll learn about the best cheap renters insurance in the next section!
Top 5 Best Renters Insurance Companies in Indiana
When asking tenants to buy coverage, it might help to understand the top five cheapest renters insurance companies in the state. You can mention these to your tenants and let them know you care enough to assist. Here are the best options:
1. Lemonade
Lemonade offers the cheapest renters insurance coverage for most people in Indiana. It costs about $12 per month and is about 29 percent cheaper than the national average.
Likewise, Lemonade has a convenient online experience, whether tenants are filing a claim or getting a quote. They won't need to provide tons of information to the renters insurance company, and it often pays claims instantly.
However, some people complain about the renters insurance from Lemonade because it has inconsistent customer service. While most reviews are positive, Lemonade doesn't use agents. Likewise, there are few renters insurance discounts available to lower prices.
2. Travelers
Renters who prefer cheap renters insurance might like Travelers. It has many coverage options and great customer service. Plus, this Indiana renters insurance company has affordable rates.
Travelers is unmatched when it comes to coverage options. It offers decreasing deductibles, equipment breakdown protection, optional replacement cost coverage, and identity theft protection.
Though it isn't as cheap as Lemonade, the average monthly premium is $16, which is less than the statewide average.
Overall, the biggest drawback here is that tenants must pay annually; there is no per-month option. This means cutting a large check once per year.
3. State Farm
State Farm is one of the top renters insurance companies if tenants prefer to work with an agent. It offers low rates and excellent customer service. However, it does cost more than Lemonade at about $16 more per year.
There are some drawbacks to using State Farm for renters insurance. For example, there aren't many discounts, and the brand doesn't offer many ways to customize the coverage. Though it does offer identity theft coverage and extended liability, there's no assistance for water backup damage or replacement costs.
4. Amica
If tenants want cheap renters insurance companies, Amica might not be the best choice. However, the brand is great for those who prefer excellent customer service. Usually, customers file fewer complaints here than at other companies.
However, there are fewer coverage options, though tenants can find many discounts.
5. American Family
American Family seems to have many positive reviews, and it's been around for many decades. Therefore, tenants who focus on financial stability and strength will like this brand. Still, it has higher Indiana renters insurance rates than other companies. If tenants prefer a great mobile app, good customer service, and many discounts, this might be the best choice.
What Is DoorLoop?
It's crucial to ensure your tenants have Indiana renters insurance. However, you will need to keep everything organized and have records of it all. DoorLoop can assist! This is an all-inclusive property management software for landlords of any size. Whether you've got a mixed-use portfolio or stick with residential or commercial properties, DoorLoop will help you manage it all.
DoorLoop helps you:
- Manage your rentals.
- Manage maintenance requests online.
- Collect rent automatically.
- Offer tenants an online tenant portal.
- Manage your accounting needs.
- Create a free and custom website (tenants can apply online, and you can market your vacant units on Zillow and Trulia).
You can schedule your demo or learn more today!
Why Work with DoorLoop
Tenants aren't likely to get renters insurance in Indiana unless they're required to do so. Therefore, it's wise for you to put it in the lease.
Plus, you can help them get coverage with DoorLoop. They're allowed to submit their own company and information so that you have it on hand. Alternatively, tenants can apply for it in the tenant portal or on the tenant application through DoorLoop, which uses SURE or Lemonade. Learn more about renters insurance through DoorLoop today!
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