Arizona renters insurance
Arizona has the second-fastest growing population in the country, with a percent growth of 1.78% in 2020 alone. The affordable rental market, coupled with an increased desire for suburban life amidst the COVID-19 pandemic has created a surge of residents from neighboring states to take residence in Arizona. This has created stiff competition among renters, and the need for individuals to stand out in any way they can on their applications. If you’re looking for a way to make the best impression on your tenant application, getting renters insurance is a critical first step. In this guide, we’ll review the importance renters insurance plays in a tenant application, and how you can find the best renters insurance for your area and needs.
Renters insurance is one of the most affordable insurance products on the market, and yet it is somewhat uncommon for renters to have it. This puts many at a great disadvantage when trying to apply for different apartments, and puts them in a risky financial position while renting rather than owning a home.
Renters insurance can help protect you, your family, and your assets while making you a much better candidate for landlords in your area. RentSpree can help you answer some of the most important questions regarding renters insurance, and help you find a policy that’s right for you.
What is renters insurance?
Renters insurance is a policy that covers a renters personal belongings and provides liability protection while they are in a rental unit. This type of insurance covers things like damages to personal property while renting as well as more comprehensive coverages like living expenses if a rental unit is deemed uninhabitable. The three policies a renters insurance typically covers include:
- Personal property coverage: This covers electronics, jewelry, furniture, and other valuables in your rental unit in the event of an accident. Your belongings are not covered by your landlord’s insurance, so it's important to get your own policy to cover anything of value in the apartment.
- Liability coverage: If someone is injured or if someone else’s property is damaged or stolen within your rental unit, you could be held liable for the costs. This clause protects you from lawsuits, as your landlord is not always held liable for these instances.
- Loss of use coverage: This coverage pays for your living expenses if you need to relocate within your lease. If a fire, natural disaster, or other issue renders the unit uninhabitable, your insurance will cover these temporary expenses until you find a new place to stay.
Do I need renters insurance in Arizona?
Renters insurance is not legally required in the state of Arizona. However, it may be required as part of your landlord’s policies for leasing. A landlord may require tenants to carry renters insurance for several reasons:
It helps lower their insurance premiums
Your landlord is required to carry their own insurance for all rental units regardless of whether or not you have insurance. However, if you have your own policy, personal claims can go through your policy rather than theirs, which can help lower their premiums.
It protects you from what your landlord’s insurance doesn’t cover
As mentioned before, your landlord’s insurance won’t cover damage to your personal belongings in most cases – it only covers their building and the assets they’ve included in the lease. Requiring renters insurance helps protect both of you and helps your landlord keep you as a tenant if issues ever happen.
It helps them find the best tenants
Landlords in highly competitive rental markets may receive dozens of applications for a single unit. By requiring renters insurance, they narrow down their selection to the most responsible applicants. Even if it isn’t required, providing proof of insurance can help make your application stand out.
Cost and providers of renters insurance in Arizona
Renters insurance prices in Arizona range between $20 and $25 per month, which is slightly higher than the national average. However, this does not reflect the exact quote you’ll receive depending on which provider you choose. Several factors will influence an individual’s quote, including:
- The amount of coverage needed
- The value and condition of the rental home
- Previous rental history and previous claims
- Location (such as areas at risk of flood or storm surge)
- Pet ownership
- Military status
Most major insurance companies offer renters insurance, including State Farm, Geico, and Progressive. However, you may be able to find more affordable options within your local area with the help of RentSpree. We work with a national network of insurance agencies to help connect renters to the best options for them.
Reasons to get renters insurance
Even if your landlord doesn’t require insurance, it is a cost-effective way to protect yourself and your assets during a tenancy. Some of the most common reasons our clients get renters insurance (even without a landlord’s requirement) include:
It protects your assets
Unless you can afford to replace every major asset within your apartment, it's wise to get an insurance policy during any tenancy. Even for more expensive policies, you’ll only be paying $300 annually, which likely doesn’t come close to the value of all the belongings within your apartment. Investing in insurance solely to protect things like furniture and electronics is a wise investment for any renter.
It helps you avoid liability
Many renters believe that if an accident happens within their home, the landlord will be held responsible for things like medical expenses or damages to property. However, this is not always the case. Renters can be held liable for onsite accidents, which is why renters insurance includes a liability clause to protect you.
It helps you stand out as a tenant applicant
Tenants who have renters insurance on their Arizona rental application are more likely to be selected for top apartments as opposed to those who don’t. This is because insured renters are seen as more financially responsible, and will cause less hassle to the landlord. If you’re struggling to find a good apartment in your city, getting renters insurance can give you a competitive edge in many cases.
You’re prepared for the unexpected
If your apartment were to ever be deemed uninhabitable (in the case of a fire or flood, for instance), you’ll be responsible for your moving and living expenses, not your landlord. Renters insurance includes a “loss of use” coverage which provides for living expenses in these circumstances so that you are protected no matter what happens to your unit.
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