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Landlords focus so much on protecting each rental property because they've put a lot of time and money into it. This investment can help them earn a passive income throughout the years, but it's also important for tenants to have appropriate coverage.
Renter's insurance is something every tenant should have, but most of them won't buy it or get coverage unless they're required.
Today, you will learn all about renters insurance. This includes its benefits, how it works, what it covers, and everything else. With that knowledge, you can feel confident asking tenants to get coverage!
What Is Minnesota Renters Insurance?
Many people wonder what renters insurance is and why it's necessary. Renters insurance offers personal property coverage to protect a tenant's things from loss and damage. Likewise, it insures them if someone gets hurt on the property.
The MN Commerce Department offers tips on whether or not tenants need renters insurance coverage, what type is best for them, and much more. You can point tenants in the right direction to help them learn more about it.
Average Cost of Renters Insurance in Minnesota Per Year
Overall, the average cost of renters insurance in Minnesota is about $85 per year or $15 per month. However, the price tenants pay depends on many factors, including where they live, the coverage options they require, and whether or not they choose additional coverage, such as inflation coverage.
How Much Does Minnesota Renters Insurance Cost (Based on Popular Cities)?
ValuePenguin claims that those in Saint Paul will pay higher rates than those in Eden Prairie and Cottage Grove. Let's take a look at the prices in various cities:
- Saint Paul - $200/year
- Saint Cloud - $181/year
- Minneapolis - $196/year
- Eden Prairie - $179/year
- Cottage Grove - $179/year
- Blaine - $182/year
Is Renters Insurance Required in Minnesota?
Minnesota doesn't require tenants to carry renters insurance, but landlords can do so. If it's in the lease agreement, the tenant will have to purchase it before they move in.
You may wonder if it's wise to require tenants to have renters insurance. In most cases, the answer is yes. It will protect their belongings and offer liability protection in an accident. Likewise, it can help you, which you'll learn about later.
What Does Renters Insurance Cover in Minnesota?
Minnesota is a pretty safe place to live. However, tornadoes have hit there in the past, and flooding can be a big concern in some areas. Usually, renters insurance doesn't cover water damage from floods or wind damage from tornadoes, so tenants may need extra coverage.
In most cases, renters insurance will cover:
- Medical Payments Coverage - This will cover any medical expenses for people who are injured while in the tenant's unit. Fault doesn't matter.
- Liability Insurance - This will cover court judgment payments and expenses if the tenant hurts someone or causes property damage within the unit.
- Additional Living Expenses - If the tenant cannot live in the apartment or house after it's damaged, renters insurance will cover alternative housing and other things.
- Personal Property Coverage - Personal property coverage will protect the tenant's possessions in or outside the rented home. It helps with vandalism, electrical malfunction, plumbing issues, fire, and theft. People can get either actual cash value or replacement cost value.
What Does Renters Insurance in Minnesota NOT Cover?
While renters insurance will cover many unexpected damages to the tenant's property, some things are excluded. Therefore, tenants might have to buy separate coverage.
For example, renters insurance will cover some water damage but not from flooding. Tenants might have to use the National Flood Insurance Program to get appropriate coverage.
Likewise, coverage might exclude a roommate's items, damage to high-value belongings, and earthquake damages.
How to Choose the Right Policy
You can offer your tenants tips when choosing a renters insurance policy. Here are some things to consider:
- Customer Service - The company should be fair and offer quick claims processing.
- Coverage Options - Each insurer is different, so it's wise to focus on standard and additional coverage options.
- Affordability - Knowing the price will help tenants determine if it's within their budgets.
Available Discounts in Minnesota
Tenants often want to keep renters insurance rates low, and discounts are a great way to do that.
Each company will come up with a renters insurance premium. It might also offer varying discounts, such as:
- Paperless discount
- Loyalty discount
- Claims-free discount
- Bundling discount
- Automatic payments discount
- Protective device discounts
How Does a Minnesota Renters Insurance Policy Protect the Landlord or Property Manager?
Landlords will also be protected from issues when tenants have a renters insurance policy. Here are the ways:
- No personal property damage claims on your insurance
- No lawsuits to your liability insurance if people are hurt on the property
- No hike in insurance premiums
- Ability to accept pets with ease
Top 5 Best Renters Insurance Companies in Minnesota
Help your tenants find the cheapest renters insurance companies with this list below:
1. SURE Renters Insurance
SURE is the best cheap renters insurance company available. It's backed by Assurant, and it will meet a tenant's needs with ease. Plus, it covers loss of use, personal property, sewage/drain backups, replacement cost, and much more.
2. State Farm Renters Insurance
Tenants who want cheap renters insurance will like State Farm. It costs roughly $9 per month and also offers a few discounts.
People tend to like State Farm because of its excellent customer service. This is crucial after an incident because the tenant wants to file a claim quickly and get back to normal. Still, there aren't as many extra coverage options here as with other insurers.
3. Nationwide Renters Insurance
Those who want to upgrade their standard policies might like Nationwide. It offers the best renters insurance because of its many add-ons. Plus, coverage is about $15 per month!
4. Amica Renters Insurance
Tenants who want the cheapest renters insurance might not like Amica. However, if they require the best customer service, it's a great choice. Plus, there are few negative customer reviews!
5. American Family Insurance Renters Insurance
American Family Insurance is a great choice for additional coverage. In fact, tenants can add travel protection, which helps with medical insurance and trip cancelations. Plus, there are many discounts and pet coverage available.
What Is DoorLoop?
Knowing why you should require tenants to purchase renters insurance is the first step. Now, you must focus on keeping things organized with property management software.
DoorLoop is ideal for all types of landlords, including those with mixed-use portfolios. With it, they can:
- Use the free and custom website to market their vacancies and allow tenants to apply online.
- Handle accounting tasks
- Offer an online portal to tenants.
- Deal with all maintenance requests online, which reduces calls and texts from tenants.
- Collect rent automatically.
- Manage their rental portfolios with ease.
Would you like to learn more or schedule a demo? Please click here!
Why Work with DoorLoop
Did you know that DoorLoop also helps you require tenants to get a renters insurance policy? They can submit companies themselves or apply directly online through the portal or application. Everything in Minnesota is powered by SURE. You can learn more about it here!
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