What’s New in Renters Insurance?

By Anthony Lolli

Renters Insurance protects your personal possessions against theft or damage, and provides you with personal liability coverage in the event of an accident. More people are renting now than ever before, and a growing percentage of people say they plan to rent for the foreseeable future, and yet the majority of renters nationwide still do not have renters insurance.

Here’s a look at some of the recent developments that are making renters insurance a more popular—and smarter—investment than ever.

Making It Mandatory

Nothing motivates tenants to get renters insurance more than being told they have to! Across the country, more and more landlords are requiring their tenants to obtain renters insurance for the duration of their lease. In some cases, this is a response to widespread natural disasters like Hurricane Sandy. In others, it’s simply savvy landlords realizing that with more people choosing to rent—particularly at higher income levels—renters insurance can avoid potential conflicts that could damage a long-term tenant-landlord relationship.

Often, landlords will have a recommended provider that they encourage you to work with. There may be benefits to using their preferred provider, such as a discounted rate or additional coverage. Be wary of any landlord who insists that you use their coverage. Landlords can require you to get insurance, and they can set a minimum amount of coverage, but they can’t prevent you from shopping around to find the policy that’s best for you.

Expanding Coverage

The rental market is evolving, and renters insurance providers are evolving right along with it. Providers are seeking to attract renters by making even their most basic policies more comprehensive than ever.

Windstorm and lightning coverage are typically standard, even in areas that have recently seen damage from severe storms. Flood and earthquake coverage are on the rise, as well, although they remain more limited and more expensive in highly susceptible regions.

More policies now cover your belongings even when they’re not in your apartment, such as items you keep in your car or in storage, or when you take your bike out for a ride.

With renting becoming an increasingly popular option for families, many policies now include pet coverage, as well.

Faster and Easier

Insurance providers are also taking steps to make obtaining and managing your renters insurance as simple and hassle-free as possible. Many providers now let you obtain coverage entirely online, without the need for lengthy phone calls or submitting documents via snail mail. Recognizing that renters enjoy the flexibility that comes with the lifestyle, a growing number of policies now allow you to opt out at any time, instead of locking you into a fixed term.

Individual providers are coming up with innovative new ways to simplify the process for renters. For instance, one new provider in New York, Suite Protector, works with landlords to approve entire buildings and residential complexes for coverage. Any tenant moving into an approved building is automatically approved for renters insurance, without needing to wait for an additional site inspection, or even a credit check.

When it comes to renter’s insurance, there are more options open to you than ever, and more are popping up every day. Always be sure to look at any policy carefully to make sure you get the coverage that’s right for you.

Anthony Lolli is the CEO of Rapid Realty NYC, New York’s largest apartment rental firm. He also owns and manages more than a dozen multifamily rental properties.