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Renters insurance protects a tenant's personal property from unexpected events, including vandalism and windstorm damage. Typically, it has lower monthly premiums than other types of insurance.
Likewise, renters insurance in Maryland covers living expenses if the home is uninhabitable, personal liability, and many other things.
Tenants have to understand what renters insurance is, how much coverage they should require of tenants, and much more. Likewise, this information is helpful to landlords, and we'll discuss everything about this protection, including the cheapest renters insurance companies available. Let's get started!
What Is Maryland Renters Insurance?
What is renters insurance? This coverage will help protect the tenant's personal property after unexpected events occur, which are called covered perils. Overall, renters insurance in Maryland offers many protections, including additional living expenses, liability protection, and personal property coverage. It's often broad and comes in handy for many situations.
Though renters insurance is primarily for tenants, landlords must understand what it is and why they should make it mandatory in their leases.
Average Cost of Renters Insurance in Maryland Per Year and Per Month
The Insurance Information Institute claims that the average cost of renters insurance in Maryland is $13 per month or $157 per year. This state is ranked 33rd for the cheapest renters insurance.
However, renters insurance premiums can be anywhere from $129 to $213. Maryland residents will pay higher than the national average, which is $180 per year or $15 per month.
How Much Does Maryland's Renters Insurance Cost (Based on Popular Cities)?
According to ValuePenguin, Baltimore is the most expensive city, and the average cost of renters insurance here is $219 per year or $18.25 per month.
It's important to understand that renters insurance in Maryland varies based on many factors. Typically, renters insurance rates will go higher in large cities because of more crime. Here is a list of popular cities and their prices for renters insurance per year:
- Waldorf - $218
- Towson - $209
- Silver Spring - $181
- Rockville - $178
- Potomac - $195
- Hagerstown - $202
- Germantown - $196
- Frederick - $171
- Columbia - $197
- Bowie - $203
- Bel Air - $194
- Baltimore - $219
- Annapolis - $189
Keep in mind that renters insurance costs could be higher or lower. It all depends on the amount of coverage the tenant has, how much stuff they have, and the deductible they wish to pay.
Is Renters Insurance Required in Maryland?
Many people wonder: Is renters insurance required in Maryland? It's a question we see often.
There's no current law in the state that requires tenants to get renters insurance to live in a leased apartment or home. However, landlords can mandate tenants to carry certain levels of personal property coverage and medical payments coverage before signing a lease.
In fact, it's wise for you to require tenants to protect their personal belongings. You can point them in the direction of the best cheap renters insurance options and let them know why you're mandating it.
What Does Renters Insurance Cover in Maryland?
Overall, renters insurance companies in Maryland typically offer four coverage types: personal property, medical payments, loss of use, and liability. Here is a better explanation of the four:
- Personal Property Coverage - Personal property coverage protects the tenant's belongings from being damaged or stolen by covered events. However, valuables might require additional coverage or endorsements.
- Medical Payments to Others - This covers the tenant if someone gets hurt while inside the unit. The policy covers those medical expenses up to the coverage limits.
- Loss of Use - Loss of use includes additional living expenses coverage if they cannot live in the home after a covered event. It primarily focuses on laundry bills, hotel payments, and food.
- Personal Liability Coverage - This protects the tenant if they damage another person's property and also covers the legal fees.
It's important to understand that renters insurance in Maryland might not cover wildfires, tropical storms, and flooding. You'll learn about that in the next section.
What Does Renters Insurance in Maryland NOT Cover?
Most renters insurance companies in Maryland will protect tenants from water damage from inside the property and their personal belongings. However, renters insurance providers might not cover these things:
Flooding
Storm surges are possible in Maryland, so people who live near the coast might need flood coverage. Most renters insurance providers don't include this in standard policies, so it might be wise to buy a flood endorsement.
Wildfires
Maryland is full of forests, so wildfires are a risk. Typically, typical house fires are included, but wildfires might not be. Renters might need a separate insurance policy to cover damages from wildfires.
Tropical Storms
Many times, the top renters insurance companies will cover tropical storm damage. However, it's wise for the tenant to ask about this if they're worried about the damages not being included.
How to Choose the Right Policy
It's often difficult for tenants to choose the right renters insurance provider because it depends on the amount of personal property they have and what it's all worth.
Most of the time, tenants can set their own coverage limits when signing up for a policy. However, they might not have enough coverage when it's time to make a claim.
Overall, tenants should ensure the renters insurance quote has a low deductible, appropriate coverage in all categories, and will actually protect them. It might also be possible to lower renters insurance rates with discounts.
Available Discounts in Maryland
Many providers will help offset the renters insurance rates tenants pay with discounts. Though each company is different, here are the most common discounts available:
- Pay-in-full discount
- Multi-policy discount
- Pre-enrollment discount
- Discounts for alarms, smoke detectors, sprinkler systems, etc.
- Age-related discounts
- Gated community discounts
- Welcome discount
- Loyalty discount
How Does a Maryland Renters Insurance Policy Protect the Landlord or Property Manager?
Before requiring tenants to get renters insurance policies, it's helpful to know how it will protect you as the property manager or landlord. Here are the main benefits:
- Protects Tenant Property - Though landlord insurance covers your property and the building, it won't cover a tenant's property. Therefore, they should get renters insurance for their electronics, furniture, clothes, and more.
- Protects Landlords from Liability - Renters policies typically offer personal liability coverage to cover the medical costs and legal fees after a guest is injured or damages the property while at the policyholder's home.
- Find Reliable Tenants - When tenants are willing to buy renters insurance, it can show you that they are responsible and will be careful while living on the property.
Top 5 Best Renters Insurance Companies in Maryland
Even though you might not be shopping for the best renters insurance companies in Maryland yourself, it's still helpful to know which providers are cheap and ideal. Tenants might ask you for this information, and you can give it to them or let them read this article! Here are the top choices:
1. Lemonade Renters Insurance
Lemonade offers generous liability and personal property coverage. Unlike more traditional companies, it lets tenants sign up without using an insurance agent. Likewise, Lemonade provides endorsements for valuables and water damage, and it's all done online.
Overall, this could be the best renters insurance company because it has excellent customer service and a low per-month fee.
Tenants will find that Lemonade offers cheap renters insurance in Maryland. Plus, the sign-up process is quick, and claims are often paid out instantly. Still, there are few discounts available, and it's hard to talk to a customer representative on the phone.
However, tenants have many additional coverage options available to them, including water backup protection, coverage for a significant other, coverage for landlord damage, and many others. Request a renters insurance quote today!
2. State Farm Renters Insurance
State Farm could be the best renters insurance company because it offers customizable coverage for all of the tenant's personal belongings. For example, they could choose the total coverage limit for personal business property and jewelry. Likewise, State Farm has valuables coverage with its standard plans, and most companies don't include that in the normal renters insurance policy.
In most cases, tenants will pay a low per-month rate and have various endorsements, such as flood insurance, earthquake coverage, identity theft insurance, and sewer drain protection. There's also great customer service, and tenants can keep renters insurance costs low by using the discounts, such as:
- Home alert protection discount
- No-claims discount
- Bundling discount
3. Liberty Mutual Renters Insurance
Liberty Mutual is also an option if tenants want cheap renters insurance in Maryland. There are various coverages, and it includes nine deductible choices. Plus, the company provides up to $1 million in personal liability, which most companies don't offer. However, the personal property coverage only goes to $25,000.
Still, you will get great customer service and low rates. Plus, you'll have access to these endorsements:
- Portable electronics coverage
- Earthquake coverage
- Blanket jewelry coverage
The discounts available at Liberty Mutual include:
- Preferred payment discount
- Online sign-up discount
- Multi-policy discount
- Early shopper discount
- Claims-free discount
4. Allstate Renters Insurance
Allstate is another reputable option for tenants to get a renters insurance policy. It offers standard, basic, and enhanced choices, and each has different coverage levels. Plus, it provides tropical cyclone deductibles, which will cover any tropical storm damage after the tenant pays the deductible.
People rave about the great customer service, so tenants will likely get help when they need it most. Plus, coverage starts the day they sign up. However, there aren't many endorsements available. Options include:
- Scheduled personal property
- Personal umbrella policy
- Flood insurance
- Identity theft restoration
Still, it's possible to save money by getting discounts like:
- Multi-policy discounts
- Easy pay plan
- 55 and retired discount
5. Farmers Renters Insurance
Farmers offers cheap renters insurance in Maryland to tenants and has a more comprehensive loss-of-use option for up to 24 months and 100 percent reimbursement. Likewise, tenants can customize the coverage for medical payments, liability, and more. There are also six deductible choices available.
Additional coverage options can include jewelry, fur, and firearms coverage, flood insurance, earthquake endorsements, and Identity Shield protection. Discounts include:
- Welcome discount
- Smoke-free discount
- Security system discount
- Multi-policy discount
- Claims-free discount
What Is DoorLoop?
Landlords should make sure tenants carry Maryland renters insurance, and they can require it. However, they're also focused on organizing their data to ensure they know who has paid, who has renters insurance, and much more. DoorLoop can help them with its all-in-one property management software.
Whether you manage commercial or residential properties or have a mixed-use portfolio, DoorLoop offers help with:
- Free custom website (tenants may apply online, and you can market any vacancies through Trulia and Zillow
- Manage accounting needs
- Offer an online tenant portal
- Manage maintenance requests to avoid calls and texts at all hours
- Collect rent automatically
- Manage all rental portfolios
- Create rental agreements
The options are seemingly endless with DoorLoop on your side. In fact, it will make your life easier and keep you from getting overwhelmed. Schedule a demo now and learn more about this amazing software solution.
Why Work with DoorLoop
Tenants aren't likely to get renters insurance coverage if you don't mandate it in your lease. Once you've done that, it's also important to help them choose a provider and get appropriate protection. DoorLoop can also help with that.
When you require tenants to have a renters insurance policy, they can use DoorLoop's tenant portal to submit the information so that you have it on file. Likewise, they can shop for it in the tenant portal and on the tenant application. Everything is either powered by SURE or Lemonade. Are you ready to streamline the process of buying renters insurance? Learn more here!
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