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You know how important it is to protect your investment. Therefore, you probably use landlord's insurance. However, it only covers the building structure and any belongings you keep on the premises.
Tenants should be worried about their personal property, and they need renters insurance to protect their items. However, most of them won't purchase renters insurance in New Mexico because they don't want the extra cost it would take to buy it.
It might be wise to learn everything you can about renters insurance to understand what it can do, how it works, and more. Likewise, you may wish to view the renter's guide from the New Mexico Department of Health. Overall, it offers helpful information, which you can pass on to the tenants.
Is renters insurance required? Can you mandate it in the lease? What is covered? These are the questions we'll answer today. Let's get started!
What Is New Mexico Renters Insurance?
Before jumping into the best cheap renters insurance options, it's important to know what it is. Overall, renters insurance will cover the tenant's personal belongings if they're destroyed or damaged because of an unforeseen event, such as a fire.
Usually, it comes into play for many emergencies and offers liability coverage, personal property coverage, additional living expenses, and medical payments to others. As you can see, renters insurance in New Mexico is very beneficial, but it's important for tenants to shop around and get the best deal.
Overall, you can help your tenants decide what options are right for them. Since renters insurance covers many things, it would be wise for them to get a policy.
Average Cost of Renters Insurance in New Mexico Per Year
The average monthly cost of renters insurance in New Mexico is about $18.18. This means it would cost $218.13 per year.
It is possible to find cheap renters insurance providers, but tenants will have to shop around to get good deals. Likewise, they need to know the value of their belongings, including jewelry, clothes, and furniture, to determine if they have enough coverage.
Overall, renters insurance prices can vary depending on many factors. For example, some tenants might have more valuable items, so they may need scheduled personal property insurance. This often costs more. Likewise, they can see low rates if they use discounts to their advantage.
How Much Does New Mexico Renters Insurance Cost (Based on Popular Cities)?
ValuePenguin claims that renters insurance in New Mexico can be quite expensive for tenants in Albuquerque, but it's often cheaper in Las Cruces. Let's take a look at the numbers:
- Santa Fe - $218/year
- Roswell - $227/year
- Rio Rancho - $215/year
- Portales - $235/year
- Las Cruces - $207/year
- Farmington - $216/year
- Carlsbad - $228/year
- Albuquerque - $249/year
Is Renters Insurance Mandatory in New Mexico?
State and federal laws do not require renters insurance in New Mexico. However, landlords can mandate it in the lease.
Since renters insurance protects tenants from unpredictable emergencies, it's wise to have it. In fact, it's an affordable way to replace things if they're stolen or lost.
Still, many tenants won't get a renters insurance policy if they're not required to do so. Therefore, you might mandate it as a lease condition.
Overall, it's similar to homeowners insurance. However, many mortgage lenders make it mandatory for homeowners, and tenants might not be required to have it.
What Does Renters Insurance Cover in New Mexico?
New Mexico is a great place to live, but it is a flood-zone area. Therefore, most tenants will need to buy a separate policy to get flood coverage.
However, wildfires are the biggest disaster, especially during long drought periods. Typically, a standard renters insurance policy will cover damages from this. Still, tenants might need endorsements to give them enough coverage.
Those living near forests or in a flood zone might have to pay more money to get renters insurance.
Here are the things that a standard policy will usually cover:
Personal Property Coverage
Personal property coverage will pay to replace or repair a tenant's stolen, destroyed, or damaged items after covered perils, such as windstorms, fire, and theft.
Many things are often stolen in a home burglary, such as:
- Cash and currency
- Electronic equipment
- Power tools
- Clothing
- Kitchen appliances
- Firearms
The things mentioned above are usually covered by renters insurance up to the coverage limits listed in the policy.
Medical Payments Coverage
This part of the renters insurance policy will pay the medical payments if someone gets injured in the tenant's rental unit, regardless of fault.
Liability Coverage
Liability coverage protects the tenant from lawsuits if the policyholders caused someone to get hurt or caused property damage. It also covers the legal fees.
For example, someone visits the tenant's home and gets bitten by the dog. Liability coverage pays for the injury. If the person sues them, liability also covers them. Lawsuits often cost a lot, so this coverage is crucial.
Loss of Use Coverage
Typically, renters insurance covers additional living expenses, such as temporary housing, food, and more. However, it only kicks in when the tenant cannot live in the rental because of destruction or damage caused by heavy winds, smoke, or fire.
Optional Coverages
Typically, renters insurance is cheap, but that's only if tenants need the basic or standard policy. Some people might require more comprehensive options, so insurers often include add-ons. They cost more, but it's great that tenants can customize their policies. Here are a few of the extra coverage options available:
Actual Cash Value and Replacement Cost Coverage
Actual cash value will replace or repair the tenant's belongings. However, it factors in depreciation. Alternatively, replacement cost coverage replaces the lost items with new ones at the current market value.
Identity Theft Coverage
If the tenant's identity gets stolen, most policies won't cover that. However, they can get separate coverage to reimburse them for false charges on credit cards, legal fees, and the replacement of confidential documents.
Scheduled Personal Property Coverage
Valuables, such as jewelry or collectibles, aren't usually covered by a standard policy because there's a cap or limit. Typically, this is set at $10,000. Therefore, if the tenant has an engagement ring valued at $15,000, the policy will only cover up to $10,000.
Tenants can schedule their items to get fully reimbursed. This means that they list the valuables separately on the policy to insure them at the actual value.
Water Backup Coverage
Most policies cover water damage in some cases. However, if a drain, toilet, or sink backs up, sending water into the dwelling, that's not included. Therefore, tenants might want extra coverage to help with water backup issues.
What Does Renters Insurance in New Mexico NOT Cover?
Usually, renters insurance companies won't cover expensive items, such as furnaces, built-in appliances, and water heaters. However, the good news is that the landlord's insurance will typically kick in and help with those things.
Likewise, a traditional renters insurance policy probably won't cover property damage caused by earthquakes and flooding. They're usually excluded in the terms. However, tenants can purchase separate flood and earthquake insurance to protect themselves.
It's important to understand that any renters policy will have a cap on the amount the insurer pays out. If tenants have expensive items, they may need to schedule them separately or risk having to spend their own money to replace them.
How to Choose the Right Policy
When focused on renters insurance in New Mexico, tenants should take inventory of all their belongings to determine the right amount of personal property coverage they need. They should catalog their possessions, pricing them out with receipts. If there are no receipts, they can research similar items online.
The total amount they get is the minimum amount of insurance they should have for their personal property.
Here are a few more tips you can give your tenants to help them find the best cheap renters insurance possible:
- Coverage Limits - Every renters policy features coverage limits. Tenants must be aware of this and make sure they get enough coverage to meet their needs.
- Cost - Comparing renters insurance quotes is the best way to keep the price low. However, tenants should ensure that they consider policies with similar coverage options, including personal liability, property coverage, and more.
- Customer Satisfaction - Tenants should focus on accessibility. Are agents readily available to help them file claims and ask questions? Is it all done online (and is that something they are comfortable with)?
- Technology - Every insurance company should have a website, and most of them have mobile apps, as well. Tenants should ensure that they can get quotes online, manage the policy online, and buy it with ease.
- Discounts - Companies should have many different discount options available. This will help tenants lower their premiums and save money.
- Coverage Options - Though providers will all have basic policies, it's wise to check out extra coverage options, called add-ons or endorsements. These might help the tenant be sufficiently covered after a loss.
Available Discounts in New Mexico
Tenants want affordable renters insurance rates, and discounts can help them achieve their goals.
Even cheap renters insurance providers will offer discounts, but the options do vary based on the brand and eligibility. Here are some of the top options:
- Multipolicy Discount - Tenants can get a discount when they bundle policies together, such as life insurance, car insurance, and renters policies.
- Smoke-free Discount - If the tenant doesn't smoke, they could get a discount.
- Safety Discount - If the tenant has smoke alarms, fire alarms, security systems, and other safety devices, they can get a discount.
- Claims-free Discount - If the tenant doesn't file a claim for a specified time period, they can get a discount.
- Early Shopper Discount - Tenants who get a new quote three days before the current policy ends might get a discount.
- Electronic Documents - If tenants get documents through email, they can save money!
- Pay-in-full Discount - Paying the policy upfront will earn tenants a discount in some cases.
- Loyalty Discount - After being with the same company for a specified time period, tenants could save money.
How Does a Renters Insurance Policy Protect the Landlord or Property Manager?
It's clear that renters insurance in New Mexico can benefit tenants in many ways. However, you might wonder how it helps you.
Let's take a look at how renters insurance policies will protect you as the property manager or landlord:
- Less Lawsuit Risk - Usually, the landlord's insurance company will not cover tenants who damage other people's property or hurt others through negligence. However, renters insurance will protect them from lawsuits.
- Relocation Expenses - Landlords might be held accountable for tenant relocation if the building is damaged after a fire or natural disaster. Typically, renters insurance policies will cover the tenant's temporary living costs.
- Fewer Property Damage Disputes - If the tenant didn't cause the property damage themselves, they might sue you for replacements. Your insurance won't cover you here, but renters insurance will protect them.
- No Higher Insurance Premiums - Making claims against the landlord insurance means you might deal with higher premiums next year. Likewise, some insurers will cancel your policy after a certain number of claims. When tenants have renters insurance, it will cover most or all of the loss, which protects you.
- Allow Pets - Most people enjoy having pets, but landlords dislike having to worry about property damage to their things and liability issues. When tenants have renters insurance, it will cover dog bites and damages. However, some policies don't help with pet issues, so tenants will need to research their options thoroughly before choosing a company to work with.
Top 5 Best Renters Insurance Companies in New Mexico
Though you're not shopping for the cheapest renters insurance companies in New Mexico personally, it is helpful to know which options are considered the best. It will be easier to distinguish a reputable company from one that didn't make it on our list.
Let's dive in:
1. Lemonade Renters Insurance
Lemonade renters insurance uses artificial intelligence, so it only offers coverage through the mobile app or online. There are no agents available, which can be problematic for some people.
However, Lemonade is one of the cheapest renters insurance companies in New Mexico. Rates start at just $5 per month, but the average cost might be higher for tenants if they need add-on coverage.
Those who want the most affordable renters insurance for their personal property will like Lemonade. However, it doesn't offer many ways to save money. For example, there are only three discounts: claims-free, fire alarm, and burglar alarm.
2. Liberty Mutual Renters Insurance
Liberty Mutual could be one of the best renters insurance companies in New Mexico. It's known for add-on coverage options, which will make the tenant's basic policy comprehensive.
Though it will always offer liability and personal property coverage, the endorsements include things like replacement cost, earthquake insurance, and blanket jewelry coverage. The latter provides more coverage exclusively for high-end jewelry pieces.
Plus, Liberty Mutual offers many discounts. These include:
- Online purchase discount
- Paperless discount
- Automatic payment discount
- Early shopper discount
- Safety device discount
- Multipolicy discount
- Claims-free discount
3. State Farm Renters Insurance
State Farm isn't the cheapest renters insurance company on this list, but it insures more homes and cars than any other provider. In fact, it handles over 83 million accounts and policies!
Overall, if tenants want quality renters insurance in New Mexico to protect their personal property, this is the one to get. What makes State Farm so special is the extra coverage available. Tenants can get:
- Replacement Cost - State Farm offers replacement cost coverage, which pays in full for items without factoring in depreciation.
- Personal Articles - High-cost items will be put under this add-on. It includes musical instruments, fine art, jewelry, and more.
- Pet Medical Insurance - Pet insurance will help tenants pay for their furry friend's medical treatments.
- Earthquake Damage - No renters insurance policy offers earthquake coverage as standard. Even if tenants don't live on or near a fault line, this might be beneficial.
However, State Farm doesn't offer many discounts. The only options are home security discounts and multi-line discounts.
4. Amica Renters Insurance
Amica is a great choice and can be a cheap renters insurance company with all the discounts available. Overall, it has fewer consumer complaints than other brands.
Plus, Amica has a great mobile app and website. Even older people can use them and do business online.
The website allows tenants to track and file claims, get online quotes, and chat with customer service agents. They can also pay their bills each month and get insurance cards on the mobile app.
Most people like Amica renters insurance in New Mexico because of the discounts. Though it offers full protection for the tenant's personal property, it allows them to save money with these options:
- E-discount
- Autopay discount
- Claims-free discount
- Multipolicy discount
- Loyalty discount
5. Progressive Renters Insurance
Tenants who want a cheap renters insurance company might find that Progressive is a great choice. Plus, people like that the insurance agents are available 24/7 by phone. There's also a "contact us" page for tenants to email the brand.
Likewise, it's ideal for renters insurance in New Mexico because it offers the "single deductible" for auto insurance and renters policies. This means tenants only pay one if they file a claim for the same issue on the auto insurance and renters policy.
There are many discounts, too, such as:
- Secured/gated community discount
- Pay-in-full discount
- Electronic documents discount
- Quote in advance discount
- Multipolicy discount
What Is DoorLoop?
Knowing about the top renters insurance companies can help you decide if tenants are using reputable brands. However, that's not all you have to focus on. As the landlord, you need to keep everything organized. Have you ever used property management software?
DoorLoop works for all types of landlords. You might manage a mixed-use portfolio or have residential or commercial properties. It will help you:
- Manage your accounting tasks.
- Collect rent with ease.
- Manage your rental portfolio.
- Offer an online tenant portal to renters.
- Manage your maintenance requests online, which reduces the need for tenants to call and text.
- Market vacancies online through Trulia and Zillow with your free, custom website. Plus, tenants can apply online!
Overall, DoorLoop will help you streamline your duties as a landlord. Learn more about it today or schedule your demo.
Why Work with DoorLoop
DoorLoop will help you require tenants to buy a renters insurance policy. It's actually much easier! They can submit their preferred company after doing the research. However, it's also easy to apply for renters insurance directly on the tenant application or through the portal. Lemonade powers this feature in New Mexico. Learn more about it today!
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