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Landlords know how important insurance can be. They usually have it for the premises, which protects against damage from covered events. However, many landlords and tenants don't realize that it won't extend to the tenant's personal belongings. They need renters insurance for that!
Renters insurance in Iowa is extremely beneficial for both landlords and tenants, which you'll learn about below. However, today's article will also help you understand what it is, how it works, and what it might or might not cover. With that knowledge, you can easily require it of your tenants and explain the advantages to them. Let's dive in!
What Is Iowa Renters Insurance Coverage?
You might be wondering what renters insurance in Iowa is. This insurance type covers many unexpected events. Tenants buy it to protect them with personal property coverage, additional living expenses, liability coverage, and more. It's broad, and it will help in various situations.
However, tenants should understand the coverage options available from renters insurance and what they need before they invest. They should do extensive research on the companies and everything else before buying a policy.
Average Renters Insurance Costs in Iowa Per Year
The average renters insurance cost is about $103 per year, which is $9/month. This is about $57 less than the national average in the US.
However, the exact Iowa renters insurance rates tenants pay depend on the amount of coverage they get for medical expenses, liability, and personal property. Likewise, extra coverage might raise the price, but it will be worth it for those with high-value items.
How Much Does Iowa Renters Insurance Cost (Based on Popular Cities)?
The average renters insurance costs people pay will vary based on the city in which they live.
According to ValuePenguin, here are the numbers:
- Sioux City - $154/year
- Fort Dodge - $157/year
- Des Moines - $170/year
- Davenport - $158/year
- Cedar Rapids - $169/year
- Cedar Falls - $153/year
Is Renters Insurance Required in Iowa?
No state laws require tenants to buy renters insurance.
You may also wonder: Can a landlord require renters insurance? Yes, they can.
If you put it in the lease agreement, you can require renters insurance of your tenants. It might be worth doing because it will protect you in case of an unexpected event. You don't want to file claims on your landlord's insurance because it might raise your premium or get your coverage canceled.
What Does Renters Insurance Cover in Iowa?
Iowa is known for its slower pace. Everything seems safer, so there shouldn't be much to worry about, right? Wrong. Even quiet places can have unexpected events arise.
For example, Iowa is known for tornadoes, heavy storms, and even floods. Typically, renters insurance covers storm and wind damage, but flooding not from a water pipe might not be covered.
Tenants should protect their items and space, and landlord's insurance probably won't help them. Therefore, renters insurance in Iowa is a great idea, and it will cover these things:
Medical Payments
The insurance provider will likely cover medical payments if a guest is injured in the tenant's home or if the tenant hurts someone outside the house. However, this won't cover the medical expenses of the policyholders; it's only for guests and non-residents.
Personal Property Coverage
Renters insurance will protect a tenant's personal belongings, even if they're not at home. This means they can get things replaced if they are damaged, stolen, or lost.
Loss of Use
Disasters happen everywhere. Coverage is critical, especially after a tenant can't live in the rental after a covered loss. While you make repairs, the tenant might have to live elsewhere, and loss of use coverage will cover their additional living expenses, such as hotels and food.
Liability Coverage
What happens if someone gets hurt in the tenant's apartment or the policyholders damage other people's property? Liability coverage is crucial because it will cover legal fees, water damage, and property damage.
What Does Renters Insurance in Iowa NOT Cover?
In most cases, renters insurance won't cover these things:
- High-cost Items - If tenants have valuables, such as electronics, jewelry, and art, they will likely require scheduled personal property coverage, which costs more.
- Non-covered Event Damage - Some events won't be covered by a renters insurance policy. For instance, flood damage is rarely covered, so tenants might need a separate policy.
- Policy Limits - Coverage limits determine what the policy pays. This is why tenants should inventory their items and know what it would cost to fully replace them.
How to Choose the Right Policy
Renters insurance helps with the tenant's temporary housing expenses and offers personal property coverage. Most companies allow them to set their own limits for those categories. However, it's wise to check out all the coverage options available before settling on a brand.
Overall, tenants should focus on the brand's customer service reviews, get multiple quotes, and ensure that the company offers mobile or online services.
Available Discounts in Iowa
Most renters insurance providers offer discounts, but each one is different. Therefore, it's up to the tenant to review their options to help them keep renters insurance premiums low.
The more common discount options include:
- Policy bundling
- Home safety devices, including fire/smoke detectors, sprinkler systems, and burglar alarms
- Retired/senior discounts
- Autopay discount
- Diminishing deductible
- Loyalty discount
- Paperless billing discount
- Smart home discount
- Claims-free discount
- Online purchase discount
- Early shopper discount
How Does a Renters Insurance Policy Protect the Landlord or Property Manager?
Tenants purchasing renters insurance will definitely see many benefits, but you might be wondering how it can protect you.
Here are a few of the ways:
- Fewer Lawsuits - What happens if a guest is hurt in the tenant's unit or a tenant injures a neighbor? If they have renters insurance, it will protect them. Otherwise, your liability coverage from your landlord's insurance will likely be used. That might not cover the costs, which means you're paying out of pocket.
- No Property Damage Disputes - If the tenant's personal property is damaged after an accident, they might not be able to replace it without renters insurance. When they don't have it, you might be held liable in some situations.
- Lower Premiums - While your landlord's insurance might not lower simply because tenants have renters insurance, it will reduce the risk of you being hit with multiple lawsuits and getting higher premiums because of it.
- Easy to Accept Pets - Pet damage is a huge concern for many landlords. If tenants have renters insurance coverage, it will cover any damages. Likewise, it offers liability protection against dog bites and other issues.
Top 5 Best Renters Insurance Companies in Iowa
Tenants will likely focus on the cheapest renters insurance companies. However, you should be aware of the top brands to ensure they have chosen a reputable one. Here are the best options:
1. Lemonade Renters Insurance
The top pick for the best renters insurance company is Lemonade! Its rates are about $8/month, which is the cheapest for the state and 32 percent less than the national average.
Overall, Lemonade focuses on a great online experience and features a mobile app. That's great for the most part because it's easy to get a quote and manage the policy.
However, an online-first approach can make it hard for tenants to talk to someone if they have questions about their coverage options. Likewise, Lemonade doesn't have a physical office.
Overall, it does offer an average customer service experience and decent coverage for personal property and more. However, those who want the best customer support might prefer another brand.
2. Amica Renters Insurance
Those who want the cheapest renters insurance companies might not like Amica, but if they focus on customer service, this is the best choice. It only costs a few extra dollars and offers many coverage options, including personal property and additional living expenses. Likewise, there are many discounts available, so it's easy to save money.
3. Nationwide Renters Insurance
Iowa tenants who want many coverage options might like Nationwide. It's not a cheap renters insurance company, but the price is about $11 per month, which is still less than the state's average.
Here, tenants can get replacement cost coverage for their valuable items and extended liability. Plus, there are other options, including water backup coverage.
However, customer service gets mixed reviews from other users. Some say it's great, while others have had problems filing claims and getting quotes.
4. State Farm Renters Insurance
If tenants want cheap renters insurance in Iowa, State Farm might be an excellent solution. It has low monthly rates, and it's so easy to customize the coverage to meet any needs.
Likewise, State Farm allows tenants to customize their policies with many add-on coverages. No other company has this many options. Things like personal liability, childcare liability, and off-premises structures are available.
However, the cheaper options from State Farm will have less coverage. The endorsements available will help, but they raise the price, too.
5. American Family Renters Insurance
American Family offers renters insurance in Iowa, and it's a great choice. There is 24/7 availability for customer service and claims process support. Plus, it features a mobile app that helps tenants monitor their plans and talk to representatives quickly.
However, American Family does have higher rates than other options. Plus, tenants must request a policy, which is reviewed before it's confirmed.
What Is DoorLoop?
Now that you know how beneficial renters insurance in Iowa is for you and your tenants, it's wise to focus on other ways you can make life easier. DoorLoop is a property management software designed for property managers and landlords of all sizes.
It doesn't matter if you manage commercial or residential properties or have a mixed-use portfolio. DoorLoop can help you:
- Collect rent automatically.
- Manage your rental portfolio with ease.
- Manage maintenance requests online to avoid calls and texts from tenants.
- Manage your accounting needs.
- Offer an online portal for tenants to pay rent and send in maintenance requests.
- Create a free, custom site for tenants to apply and for you to market any vacancies with ease.
You can learn more about DoorLoop today and schedule your demo to see how it works!
Why Work with DoorLoop
DoorLoop helps you require tenants to have a renters insurance policy, too! They can submit their own companies, but it's also easy to apply for renters insurance directly through the tenant portal or on the application. Everything is powered by Lemonade and SURE, though it depends on your state.
Do you want to learn more about how DoorLoop can assist with renters insurance? Find out more today!
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