It's wise for tenants to carry renters insurance on their belongings, but most of them won't do it unless it's required. Therefore, it's up to you as the landlord to make sure they have this necessary coverage. No one knows when disaster will strike, such as a fire, but it's wise to have protection.

Renters insurance is designed to protect the renter's things, similar to landlord's insurance safeguarding the buildings and landlord's items. Today, you'll learn more about it all.

There is some confusion surrounding renters insurance. Therefore, the Missouri Department of Insurance has created a lesson plan to help people know what it is, why it's needed, and much more.

Though you don't need to buy Missouri renters insurance for yourself, it's still important to learn as much as you can. Then, you'll be able to explain to tenants why you require it and why it's crucial for them to get it. Let's dive in.

What Is Missouri Renters Insurance?

Many things can go wrong with your rental property, including damages and injuries. Therefore, it's wise to protect yourself through landlord's insurance. However, that won't cover the tenant's belongings. They will need renters insurance in Missouri.

Renters insurance is one kind of insurance that covers many unexpected events. It often includes things like personal property coverage, liability protection, and additional living expenses. Likewise, it's broad enough to deal with many situations.

It isn't as easy as buying a policy, though. Each company is different and offers many coverage options. Therefore, it's important for tenants to shop around and get the best deal.

Average Cost of Renters Insurance in Missouri Per Year

The average annual premium for renters insurance in Missouri is roughly $150, which is only slightly cheaper than the national average.

Likewise, the price tenants pay depends on how much coverage they need, where they live, and whether or not they have valuables. For example, expensive cameras, engagement rings, artwork, and musical instruments will require scheduled personal property coverage, which costs more.

How Much Does Missouri Renters Insurance Cost (Based on Popular Cities)?

According to ValuePenguin, renters insurance rates will vary based on the city. Let's peek at some of the most popular cities in the state:

  • St. Louis - $275/year
  • St. Charles - $240/year
  • O'Fallon - $236/year
  • Kansas City - $261/year
  • Florissant - $241/year
  • Columbia - $234/year
  • Ballwin - $241/year

Is Renters Insurance Required in Missouri?

Many people wonder: Is renters insurance required in Missouri? No law states that tenants must buy renters insurance.

However, the next question on your mind is: Can a landlord require renters insurance? Yes, if it is in the lease agreement, tenants must buy it before they move in.

Should you make it mandatory through the lease? Generally, yes. You want people to be protected, and they might not get renters insurance on their own. Therefore, requiring it could be the best solution for everyone involved.

What Does Renters Insurance Cover in Missouri?

Missouri is well-known for having extreme weather conditions. Winter often brings serious storms and cold weather. However, it's also prone to tornadoes, wildfires, and floods. Many times, wind damage and fire are covered, but tenants might need a separate policy for specific natural disasters.

Let's take a look at what a traditional renters insurance policy will cover and the coverage options available:

Personal Property Coverage

Personal property coverage protects the tenant's stuff, whether they're in the home or not. Therefore, if the living room furniture gets damaged because a burst pipe sprayed water everywhere, the policy will kick in.

Liability Coverage

If a tenant is responsible for damaging another person's property or someone gets hurt in their unit, personal liability protection will cover the damages and legal fees.

Loss of Use

Suppose a covered loss, such as a windstorm or fire, damaged the apartment building so much that the tenant can't live there. The policy includes loss of use coverage to reimburse them for temporary housing and other extra costs.

Medical Payments Coverage

The insurance company will cover medical expenses if a guest is injured in the tenant's place. However, it also covers the medical payments if they hurt someone outside their home. Still, renters insurance doesn't cover the medical payments for people living in the house or apartment.

What Does Renters Insurance in Missouri NOT Cover?

Though renters insurance can help with many things, it doesn't cover these issues:

  • Damage Over the Coverage Limits - The coverage limit determines how much the policy pays. If the damages are above that amount, the tenant will be using some of their own money.
  • Non-Covered Losses - Some losses aren't covered by renters insurance. For instance, many policies don't offer flood damage coverage. If the property floods, the tenant's items aren't replaced or repaired.
  • Unscheduled Valuables - High-cost items aren't often covered under a traditional policy. If the tenant has expensive electronics, jewelry, and artwork, they should be separately scheduled, which costs more.

How to Choose the Right Policy and Renters Insurance Company

Tenants should be focusing on the best renters insurance they can get instead of only looking at the price. Here are a few tips to offer them when they select a policy:

  • Discounts - Discounts can help tenants save money on the premiums. They should look for many options.
  • Costs - Clearly, affordable rates are the key for most people, but they shouldn't focus solely on the price.
  • Coverage Options - Basic policies are similar between companies, but some renters might need additional personal property coverage. Therefore, it's wise to check for other policy limits, deductibles, and add-ons.
  • Great Customer Service - Everyone hopes they never have to use their insurance. If it happens, they're often upset, angry, or sad. Therefore, filing a claim will never be a good experience. Still, tenants need a straightforward process to ensure they can get through it as quickly as possible.

Available Discounts in Missouri

Tenants can lower their renters insurance rates by using companies with various discount options. Each brand is different, but discounts can include:

  • Senior discounts
  • Multi-policy discounts
  • Auto-pay discounts
  • Paperless billing
  • Loyalty discounts
  • Smart home discount
  • Paying the full amount upfront
  • Claims-free discount
  • Online purchase discount
  • Early shopper discount

How Does a Renters Insurance Policy Protect the Landlord or Property Manager?

How will renters insurance in Missouri help you as the landlord? Here are a few of the ways:

  • Renters insurance will protect you from a lawsuit if the tenant's personal property is damaged because of a fire or another natural disaster. Your own liability protection probably won't cover anything other than your belongings and the building.
  • Landlords who require renters insurance will often find it easier to allow pets. It will cover any property damage done and will offer liability protection for dog bites.
  • Tenants might demand that you pay for any damages after an accident if they can't. Renters insurance gives them another option to fall back on first.

Top 5 Best Renters Insurance Companies in Missouri

Tenants often want the cheapest renters insurance companies to consider. By understanding what each one offers, you can help them determine the best choice for their needs. Let's dive in!

1. Lemonade Renters Insurance

Lemonade Renters Insurance

Lemonade is the top pick for the best cheap renters insurance company in Missouri. It has lower prices than any other brand and is highly convenient. Everything is done online, so tenants will need to download the Lemonade app. Then, they'll sign up quickly and get coverage.

However, putting the focus on the mobile app is a drawback for some. It's often harder to talk to a live person if the tenant has a question or must file a claim. There are no physical agencies to visit.

Still, the coverage options are decent at Lemonade. Tenants can get valuable items protection and replacement cost coverage for their personal property. However, they miss out on helpful add-ons, too.

2. Nationwide Renters Insurance

Nationwide Renters Insurance

Tenants who want extra coverage options should think of Nationwide renters insurance. The prices are a little cheaper than the average at about $19 per month. Plus, it offers many ways to boost coverage amounts with add-ons, including:

  • Valuables Plus - Add extra coverage to any specialty items like firearms and jewelry.
  • Replacement Cost Coverage - Get the full value of any stolen or lost personal property.
  • Identity Theft Coverage - Nationwide will monitor the tenant's financial information and cover damages and legal services.

If tenants want a cheap renters insurance company, this might not be the best solution when they add extra coverage. Plus, Nationwide renters insurance doesn't make it easy to lower the price people pay through discounts.

3. Amica Renters Insurance

Amica Renters Insurance

If Missouri renters are willing to spend a little extra for excellent service, Amica is a great choice. Though it's not one of the cheapest renters insurance companies, it receives top scores for customer satisfaction when making a claim or buying a policy. The National Association of Insurance Commissioners claims that Amica gets about 12 percent of complaints compared to similar companies.

Overall, renters can expect to pay about $20 per month for insurance. This is cheaper than the state average. Plus, it offers many discounts, which can help tenants lower their premiums.

4. Toggle Renters Insurance

Toggle Renters Insurance

Toggle might not offer the cheapest renters insurance in Missouri, but it is a tech-forward provider. If tenants wish to build their credit scores, they might like it. Landlords rarely report monthly rent payments to the credit bureaus. However, Toggle features a Credit Lift option that will.

Overall, Toggle offers customization for renters insurance. It provides unique add-on options, such as pet protection.

5. Allstate Renters Insurance

Allstate Renters Insurance

Those who want the best renters insurance in Missouri might want to consider Allstate. It offers many discounts, and the insurance experts here will help tenants add complex things to their policies.

Overall, Allstate offers similar coverages, and the agents will let tenants spell out any extra items they want to cover. However, tenants will have to work with a live person and cannot buy a policy online.

Since there are many ways to customize the policy, it's not the cheapest option.

What Is DoorLoop?

Though requiring renters insurance in Missouri is a great first step to protecting yourself and your tenants, you also need to keep everything organized. DoorLoop's property management software is ideal for all types of landlords. Whether they've got a residential, mixed-use, or commercial portfolio, it will help them:

  • Manage a rental portfolio.
  • Create a lease agreement.
  • Collect rent automatically.
  • Manage their maintenance requests online, thereby reducing the need for tenants to call or text.
  • Offer an online tenant portal.
  • Create a free, customized website. Tenants may apply online, and you can effortlessly market your vacancies through Trulia and Zillow.

You can do all of the things listed above with one software solution! Learn more about DoorLoop or schedule your demo today!

Why Work with DoorLoop

DoorLoop offers many benefits, but another thing you can do is require tenants to get a Missouri renters insurance policy. They can easily submit their own company. However, they can also apply for renters insurance on the tenant application or through the portal. It's all powered by Lemonade and SURE, depending on your state. Learn more about this feature today!

David is the co-founder & CMO of DoorLoop, a best-selling author, legal CLE speaker, and real estate investor. When he's not hanging with his three children, he's writing articles here!

Legal Disclaimer

The information on this website is from public sources, for informational purposes only and not intended for legal or accounting advice. DoorLoop does not guarantee its accuracy and is not liable for any damages or inaccuracies.