Renters in Utah should ideally think about having insurance after finding the right property. If you have been thinking about annual and monthly premiums, the average rate in the state costs 23% cheaper than the national average.
It’s easier to choose the right policy when you know what could be covered before moving into a new place. Whether you intend to move into homes for rent in Daybreak or apartments in Salt Lake City, renter’s insurance will be useful even if you think it’s an unnecessary expense.
Why Renter’s Insurance Matters
The average cost of annual premiums in the state is among the most affordable in the U.S., where the average annual premium costs $187. You could only pay $145 per year in Utah for a policy that covers up to $15,000 in personal possessions and up to $300,000 for personal liabilities.
The actual coverage, however, still depends on several factors. These include your location, the value of your belongings and the condition of your rental unit. If you have valuables such as jewelry, don’t expect to be reimbursed with the full price of the item when it gets lost or stolen.
Most insurers impose a limit on the amount for objects that are considered to be high risk. In other words, it’s best to purchase a separate policy for your precious stones and accessories. Renters who live in a place with a high crime rate will also have to pay a more expensive premium.
The same applies to places that are prone to flooding and hurricanes, so opting for cheaper premiums eventually forces you to choose the best possible rental unit. You could further lower your insurance rates by renting a place with features like home alarm systems and other safety features.
Determining Your Coverage
Once you decide on how much you’re willing to pay for renter’s insurance, the next thing to determine involves your policy’s coverage. As an example, you may need to move out temporarily because of a busted pipe in your neighbor’s unit, which then damages your apartment.
This forces you to spend a few days in a different place until the issue is resolved, and having insurance lets you pay for hotel accommodation if you can’t stay at your parents’ house.
On the flip side, you should have liability coverage when the damages originated from a broken fixture in your unit. Landlords usually require tenants to have up to $100,000 in liability protection, but ask them before signing a contract just to be clear.
Coverage for property damages normally cost from $30,000 to $50,000 for apartments. If you have car insurance, you could ask the company to include a policy for your unit. This could save you money since some insurers provide discounts for bundled plans.
Don’t assume that landlords will be liable for any property damages since it’s your responsibility to look after the unit. When searching online for different listings, contact a property management company that could direct you to a safe and flood-free neighborhood.
