Many newly leased apartments request residents to provide proof of renter’s insurance before moving in. This is an extra cost, separate from your monthly rent, that you should be prepared to budget for.
Renter’s insurance typically covers three main areas: personal property, liability, and additional living expenses.
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Read Next: A Student’s Guide to Renter’s Insurance
At most properties, residents can either obtain renter’s insurance or participate in a liability waiver program to satisfy liability requirements.
So, what’s the difference between renter’s insurance and a liability waiver?
In this article, we’ll answer common questions about renter’s insurance and liability waiver programs, including what each covers, their costs, and the key differences between the two options.
What is renter’s insurance and what does it cover?
Renter’s insurance protects tenants throughout their lease, typically covering damages to personal belongings caused by fire, theft, natural disasters, or other unforeseen events. This insurance generally includes different types of coverage, such as personal property coverage, personal liability coverage, and additional living expenses or loss of use coverage.
Personal property coverage protects your belongings from incidents like fire or theft.
Personal liability coverage helps if you’re held responsible for injuries that occur on your property or damage to someone else’s property. For example, if someone is injured from a slip in your apartment or if you accidentally damage a neighbor’s property, this coverage can help cover medical costs and legal fees.
Additional living expenses or loss of use coverage assists with extra costs if you need to temporarily leave your home, such as expenses for food, transportation, pet care, and lodging.
It’s important to review the specifics of any policy to understand what is covered. Some policies focus more on protecting personal belongings, while others emphasize liability coverage. Choosing the right policy depends on your specific needs.
For more details on renter’s insurance and how to obtain it, check out our student’s guide to renter’s insurance.
What are liability waiver programs and what do they cover?
A liability waiver program, also known as liability insurance, provides coverage for damages to the landlord’s property caused by tenant negligence. For example, if a tenant accidentally leaves a candle burning and it leads to a fire, they would be responsible for the resulting damage. However, if they are enrolled in a liability waiver program, the landlord can file a claim under this policy to cover the damages.
Most student housing leases require tenants to maintain at least $100,000 in liability coverage. Many student housing complexes offer liability waiver programs to meet this requirement.
While liability waiver programs provide up to $100,000 in coverage, they differ from renter’s insurance. These programs specifically cover tenant liability for damage to the rental unit or others’ property, but do not cover the tenant’s personal belongings.
In liability waiver programs, the landlord is listed as an additional interest on the policy, protecting them from property damage caused by tenant negligence. Typical damages covered include fire, water damage, and pipe leaks, while exclusions include theft, burglary, bodily injury, personal injury, natural disasters, criminal acts, or maintenance issues.
What is the cost of each option?
The cost of renter’s insurance varies based on the property location and the amount of coverage you choose. In 2024, the average cost for renter’s insurance in Arizona is about $18 per month, though options range from around $10 to over $40 per month, depending on the coverage level.
The cost of liability waiver programs also varies by property management company or landlord, typically ranging from $10 to $25 per resident, per month. At Rambler Tempe, the liability waiver program is $15 per resident, per month.
It’s important to note that liability waiver programs do not provide coverage for personal property.
What are the differences between the two?
The key difference between renter’s insurance and landlord’s insurance lies in who they protect and the type of coverage provided.
Renter’s insurance is typically more comprehensive, offering protection for you, the tenant. It covers personal property, liability, and additional living expenses.
In contrast, liability waiver programs are designed to protect the property owner or landlord. These programs usually limit tenant liability to $100,000, covering both the tenant and the landlord, but their primary purpose is to protect the landlord from damages caused by tenant negligence. They do not cover the renter’s personal belongings or additional living expenses.
In summary, renter’s insurance covers a tenant’s personal property, liability, and additional living expenses, while liability waiver programs primarily protect the landlord by addressing damages caused by tenant negligence.
Rambler’s Liability Waiver Program: Cardinal Protect
At Rambler, if you choose not to purchase renter’s insurance, you will automatically be enrolled in Cardinal Protect, our liability waiver program managed by Foxen. This program comes with a $15 monthly fee, which will appear in your resident portal.
Cardinal Protect provides mandatory liability coverage of $100,000 for damages caused by resident negligence, such as fire, smoke, explosions, water damage, and sewer backups. It also covers up to $1,000 in displacement costs if you’re temporarily unable to stay in your apartment, with no deductible or premium increase for claims.
It’s important to note that Cardinal Protect is not a substitute for renter’s insurance. It only meets the minimum liability coverage required by the lease agreement.
Tenants can provide proof of renter’s insurance at any time during their lease, and the liability waiver program fee will be removed from their account.
We hope this article has clarified the differences between renter’s insurance and liability waiver programs. If you have any questions or need further clarification, please contact our leasing team. We’re happy to assist you with your housing needs!
