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Landlords often worry about what would happen if the tenant's things were damaged after a disaster. It occurs more frequently than they imagine, which is why it's crucial for tenants to have renters insurance.
It's important to understand what Maine renters insurance is, what it offers/covers, and everything else. This will help you decide if you should require tenants to get it. Let's learn more!
What Is Maine Renters Insurance?
In a sense, renters insurance is a security blanket for all of the tenant's personal property. It will protect televisions, laptops, bicycles, linens, clothing, and everything else.
Overall, Maine renters insurance is something most tenants don't think about, but it's very helpful.
Average Cost of Renters Insurance in Maine Per Year
The cost of renters insurance is, on average, $144 per year, or about $12 per month. This is less than the national and state average.
How Much Does Maine Renters Insurance Cost (Based on Popular Cities)?
Overall, Maine renters insurance will vary in price based on the city the property is located in. Brunswick and Scarborough might have cheaper rates, but those in South Portland and Gorham will pay more. Let's break it down for you according to the numbers from ValuePenguin:
- Orono - $150/year
- Gorham - $166/year
- Brunswick - $143/year
- Scarborough - $143/year
- Bangor - $151/year
- South Portland - $162/year
- Portland - $161/year
Is Renters Insurance Required in Maine?
State law doesn't require tenants to get renters insurance. However, landlords and property managers can mandate it in the lease.
What Does Renters Insurance Cover in Maine?
Maine rarely sees hurricanes, though it does experience severe winter weather. Knowing what a renters insurance policy will cover can help you understand why it's so important.
Here are several factors to consider:
- Loss of Use - If the tenant can't live in the home while you make repairs after a covered event, the policy will offer additional living expenses.
- Personal Property Coverage - Personal property coverage will replace the tenant's belongings after covered losses, such as theft and fire.
- Liability Protection - This defends the tenant against a lawsuit if they damage other people's property or injure someone.
What Does Renters Insurance in Maine NOT Cover?
Though renters insurance is great for many situations, other factors might not be covered. These include:
- Most renters insurance policies won't cover flood damage and high-wind damage, such as from a hurricane.
- Typically, renters insurance policies have limits. The coverage limit determines what the policy will pay, so it's wise for tenants to take inventory of their belongings first.
- Many times, renters insurance won't cover high-cost items, such as electronics, collectibles, and jewelry. Tenants will need to separately schedule them for an added cost.
How to Choose the Right Policy
Usually, it's best for tenants to compare renters insurance rates to ensure they're getting the best deal. This also means understanding the policy features and coverage limits included.
Another focus should be on customer satisfaction. How have other customers been treated when using the company? Tenants want fast claims processing and quick answers to their questions.
Available Discounts in Maine for Lower Renters Insurance Rates
Companies usually offer several discounts to help tenants keep rates low. Here are a few of the common ones:
- Bundling discounts
- Online statement discount
- Automatic payments discount
- Claims-free discount
How Does a Renters Insurance Policy Protect the Landlord or Property Manager?
Landlords often wonder how requiring renters insurance will help them. Here are some of the ways:
- Protection for the tenant's personal property
- Landlord protection from liability
- Ability to allow pets with ease
- Finding reliable tenants
Top 5 Best Cheapest Renters Insurance Companies in Maine
Knowing the top renters insurance companies available in Maine will help you advise tenants on the options available. They include:
1. Nationwide Renters Insurance
Nationwide might be the best cheap renters insurance company. Though it does cost about $11 per month, it has many coverage options. For example, tenants can customize their policies with:
- Earthquake coverage
- Theft extension
- Valuable items coverage
- Water backup protection
- Replacement cost coverage
Still, tenants should be aware that some people aren't happy with the coverage options. Nationwide gets many complaints compared to similar brands.
2. State Farm Renters Insurance
If tenants want the cheapest renters insurance rates, they should consider State Farm. It costs about $8 per month, which is only $100 per year.
Overall, the customer service from State Farm is excellent. The company has received few complaints, according to the NAIC (National Association of Insurance Commissioners).
Though State Farm does offer protections similar to other brands, it's not easy to increase coverage amounts. For example, it doesn't provide water backup coverage or replacement cost coverage.
3. Allstate Renters Insurance
Allstate is another great choice, especially for seniors. It offers the 55 and retired discount, which can save senior citizens up to 25 percent off their bills. Plus, there are other discount options.
However, if tenants don't qualify for discounts, the coverage can be expensive. It's roughly $13 per month. Likewise, tenants have to work with a local agent and might have subpar customer experiences.
4. Amica Renters Insurance
Amica could be the best choice for renters insurance if tenants are focused on customer service. It rarely receives complaints from the NAIC, which means customers tend to be happy with the brand.
However, Amica is also more expensive than other options at $14 per month. Therefore, tenants will pay more for the benefit. However, there are discounts available to offset the cost.
5. SURE Renters Insurance
SURE is another great company for renters insurance. Coverages include personal property, personal liability, loss of use, identity fraud, replacement costs, sewage/drain backup, and more.
Tenants can buy and manage policies in one place, get instant quotes, and find a plan tailored to their needs!
What Is DoorLoop?
DoorLoop is an excellent property management software solution for all landlords. Whether they manage a mixed-use portfolio or commercial/residential properties, they can use it to:
- Offer tenants an online portal.
- Manage their rental portfolios.
- Collect rent automatically.
- Manage their accounting tasks.
- Manage their maintenance requests online.
- Receive a free, customized website for tenant applications and landlord marketing purposes.
If DoorLoop sounds like a great option, learn more or schedule a demo today!
Why Work with DoorLoop
DoorLoop can also help you require tenants to get a renters insurance policy! They can submit companies or apply directly on the application or tenant portal. It's all powered by SURE in Maine! Learn more about it today!
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