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Everyone knows that insurance is designed to help in case of an accident or injury. In most cases, people hope they never need to use it, but it's there when necessary.
Overall, landlords will get landlord insurance to protect the building or structures and any personal property on the premises. However, it often won't extend to the tenant's things. They will need Arkansas renters insurance to help them in case of an accident or damage.
Renters insurance is a great thing for tenants to have, but most of them don't know about it or don't want the added expense.
Today, you will learn what renters insurance is and what it covers. This will help you explain this to your tenants, allowing them to get all the information necessary to make an informed decision. Let's get started!
What Is Arkansas Renters Insurance?
Overall, renters insurance covers various unexpected events. It will protect the tenant with additional living expenses, liability coverage, and personal property coverage. Likewise, Arkansas renters insurance is designed to be broad to help in many situations.
Still, tenants should understand the renters insurance coverages available to them. You will learn about this so that you can help them get information or point them in the right direction.
Average Cost of Renters Insurance in Arkansas Per Year
Typically, renters insurance costs about $276 per year in Arkansas, while the national average is only $216. Overall, the Arkansas renters insurance rates the tenant pays depend on where they live. For example, a two-bedroom house in Little Rock will have different premiums than a single-family house in Hot Springs.
Other factors can come into play, too. Examples include the age of the building, whether there are protective devices in the home, the amount of insurance the tenant needs, their deductible, any add-ons they want, and their claims history.
How Much Does Arkansas Renters Insurance Cost (Based on Popular Cities)?
Let's take a look at the renters insurance cost in each city, according to ValuePenguin:
- Pine Bluff - $296/year
- Maumelle - $285/year
- Little Rock - $312/year
- Jacksonville - $287/year
- Bentonville - $246/year
- Bella Vista - $270/year
Is Renters Insurance Required in Arkansas?
Many people wonder: Is renters insurance required? No Arkansas law demands that tenants get renters insurance coverage. It's not a legal mandate like car insurance.
Still, a landlord can require renters insurance. If you include a clause in the lease, tenants will have to buy it before moving in. This can protect you and them.
Overall, it's wise to require renters insurance because it will cover the tenant's personal property, which isn't included in your landlord insurance. Likewise, it will protect tenants from legal liabilities happening on the property.
What Does Renters Insurance Cover in Arkansas?
Arkansas often sees droughts, wildfires, tornadoes, and winter weather. Usually, these things are covered, but a standard renters insurance policy might not protect tenants from strong winds, floods, and wildfires.
Here are the things that renters insurance in Arkansas will cover:
Medical Payments Coverage
If a tenant's guest falls down and must go to the hospital, the renters insurance will cover their medical payments. It's there to protect them if a guest is injured outside or inside the home.
Liability Coverage
Liability insurance is there to help when a tenant is held financially liable for an accident. What happens if someone falls in the apartment? Liability protection will kick in when someone is injured on the property, or a policyholder causes damage to other people's things. Likewise, it can be used if a dog bites another person.
Loss of Use
If the tenant cannot live in the home because of a covered damage, loss of use coverage can help with additional living expenses, such as parking, laundry, food, and a hotel room.
Personal Property Coverage
Personal property coverage protects the tenant's personal belongings both outside and inside the home. It covers vandalism, fire, theft, and many other perils. If a laptop gets stolen from the coffee shop or a couch is ruined because of a burst pipe, renters insurance protects it all!
What Does Renters Insurance in Arkansas NOT Cover?
Though renters insurance in Arkansas protects tenants against many things, it won't cover everything. For example:
- Tenants will have coverage limits on the policy. Therefore, anything above that amount is an out-of-pocket expense for them.
- Some events won't be covered by renters insurance. Flooding is one of them, so tenants might want to consider a separate policy to get full coverage.
- Expensive items, including jewelry, artwork, and electronics, are rarely covered under a traditional policy. Tenants will likely need to schedule them separately, and this does cost more.
How to Choose the Right Policy
When choosing renters insurance, there are many providers available.
Here are a few tips to help your tenants get the right insurance products:
- Renters Insurance Quotes - Tell tenants they should be requesting at least three renters insurance quotes before deciding on a company. Each one should have similar coverages for personal property, liability, and all the rest.
- Discounts - It's easy to save money on renters insurance policies with discounts. Tenants can ensure that they have the most options to keep costs low.
- Coverage Options - A basic policy is often similar, regardless of the provider. However, tenants may need add-on coverages or different deductible amounts.
- Technology - Often, people today want the convenience that mobile apps and websites offer. Tenants should focus on companies offering online resources and customer portals.
- Customer Satisfaction - No tenant should be upset or frustrated when trying to file a claim after an incident. Therefore, it's wise to read customer reviews to ensure that each brand considered has good ratings and focuses on communication.
Available Discounts in Arkansas
Most providers offer various discount options, which can help tenants lower their renters insurance rates. However, each brand is different, so it's wise for them to check it out first.
The most common discounts to help lower renters insurance premiums include:
- Multipolicy bundling
- Preventative devices (fire alarms, smoke alarms, burglar alarms, etc.)
- Annual payment savings
- Online purchase discount
- Online autopay enrollment discount
- Claims-free discount
- Early shopper discount
- Senior discounts
How Does an Arkansas Renters Insurance Policy Protect the Landlord or Property Manager?
Tenants getting renters insurance in Arkansas is a great thing because it protects their personal property and also extends many of its benefits to you as the landlord.
Here are the ways it protects you:
- Most policies will cover property damage from pets. Likewise, they offer liability protection against dog bites and other accidents. Tenants should check with the company to ensure it covers pet-related issues, but this can be a great way for you to allow pets without fear.
- Renters insurance will protect you from lawsuits if a tenant's things are damaged. Likewise, tenants might seek you out to pay damages to their property after an accident. You won't have to worry if they have a policy in place.
- With a renters insurance policy, your insurance premiums might stay low. You won't have multiple lawsuits and claims, which means you save money and don't have to worry about your policy getting canceled.
Top 5 Best Renters Insurance Companies in Arkansas
Tenants will likely want the best, cheapest renters insurance companies. If they go with any provider on this list, you know their items are protected thoroughly. Let's dive in:
1. Lemonade Renters Insurance
Lemonade is the top recommendation for renters insurance in Arkansas. It is easy to use and has great rates. Overall, the average price for coverage is $15 per month, which saves tenants $93 each year compared to the national average.
Overall, Lemonade offers personal property coverage, and it's easy to get an online quote with no hassles. It also has decent customer satisfaction, though there are more complaints, according to the NAIC (National Association of Insurance Commissioners). Still, you can get extra coverage for appliance breakdowns and water backup damage at Lemonade.
2. Travelers Renters Insurance
Those who don't care about getting the cheapest renters insurance company might like Travelers. The basic policy allows tenants to apply 10 percent of the personal property coverage to replace or repair the home improvements made/acquired.
Likewise, there are many add-on options with this renters insurance provider!
3. Amica Renters Insurance
If tenants don't care about having the cheapest renters insurance company and are focused on customer service, Amica is a great choice. There are very few complaints shown on the NAIC website.
However, the coverage options are pretty simple, and there aren't many add-ons or discounts available.
4. Liberty Mutual Renters Insurance
Liberty Mutual is one of the best renters insurance companies out there because it's got more than 100 years of experience in the industry. This national provider offers tons of discounts, so having slightly higher policy rates might not be a big deal. Plus, there are many ways to customize coverage.
5. Nationwide Renters Insurance
Nationwide could be the best renters insurance provider because it comes with unique perks, such as fraud protection!
Plus, Nationwide offers the Brand New Belongings endorsement option. This gives tenants replacement cost coverage when filing claims.
What Is DoorLoop?
Requiring renters insurance in Arkansas is essential for a landlord. However, you also have to worry about keeping things organized.
DoorLoop can help you. The all-in-one property management software works for landlords who manage commercial and residential properties. You can easily:
- Manage your rental portfolios.
- Manage online maintenance requests without making tenants call or text all the time.
- Collect rent automatically.
- Use the free and custom website to market vacancies and let tenants apply online.
- Manage your accounting needs.
- Provide a tenant portal.
Are you ready to learn more? Schedule your demo today!
Why Work with DoorLoop
Did you know that DoorLoop can help you require tenants to buy renters insurance in Arkansas? They can submit the renters insurance policy themselves or apply online directly through the tenant portal or application. Everything is powered by Lemonade in this state.
Learn more about renters insurance through DoorLoop today!
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