in Utah costs $107 per year. While coverage costs may change slightly year-to-year, your policy will always provide financial protection in case of property damage, personal liability, or loss of use of your rental.

Buying renters insurance is not always the first thing you think about when you sign a lease on a new apartment, but it can provide you with important coverage if there is a disaster or injury in your living space.

To help you understand what renters insurance does (and doesn’t) cover and how to build a policy that fits your needs,

car

and

home insurance

comparison app

Jerry

has created this guide to walk you through the ins and outs of purchasing renters insurance in Utah.

What is renters insurance?

Renters insurance gives financial protection to a renter if they are faced with replacing their belongings or paying liability costs due to a disaster or injury on their rental property.

A typical renters insurance policy includes the following coverages:

Property (Coverage C): This covers the actual cash value (ACV) or replacement cost of your belongings if they are damaged or destroyed by an event named in your policy.

Loss of use (Coverage D): Also called additional living expenses coverage, this covers temporary hotel stays, food delivery, or other living costs if your rental place becomes uninhabitable.

Personal liability (Coverage E): If someone else is injured or has their belongings damaged on your rental property, this covers any fees you have to pay as a result of legal action against you.

Medical payments (Coverage F): This covers any medical expenses—up to a set amount—resulting from someone else’s injury on your rental property.

What does renters insurance cover?

Your renters insurance policy will have a list of events, called perils, that it covers. You will only be able to file a claim with your insurer if the damage or injury was caused by a named peril.

Perils that are commonly covered by renters insurance in Utah include:

Fire

Lightning

Smoke

Theft or vandalism

Explosions

Impact by a vehicle or aircraft

Falling objects

Burst pipe or plumbing backup

Accumulated weight of ice or snow

Hail

Since renters insurance differs based on company and location, your policy may include all these perils and more, or may not provide coverage for every event listed above. Check your policy to see what perils it covers.

In Utah, there are a few natural disasters that can cause significant damage in your rental. Two significant risks in the state are earthquakes and flooding, which are not commonly covered by renters insurance.

To make sure you are covered if an earthquake or flood destroys your belongings, you can purchase additional—and generally inexpensive—insurance coverage to add to your standard renters insurance policy.

What does renters insurance not cover?

While renters insurance will cover most of your personal belongings, there are some exceptions, including:

Items for your job or business: If you run a business or work from home, your renters insurance won’t apply to items that are owned by that business like your work computer or phone.

Valuables: Jewelry, antiques, or artwork will sometimes need additional coverage if they are worth more than the maximum item value specified in your policy.

Your car: Renters insurance (unfortunately) won’t cover your car, even if it is parked on the property when it is damaged. You will need a separate

car insurance

policy that meets the minimum requirements in Utah.

MORE:

Utah car insurance laws

Key Takeaway Renters insurance covers the damage or destruction of your belongings but will also provide financial protection if you are held liable for someone’s injuries on your property.

Is renters insurance required in Utah?

Renters insurance isn’t required by law in Utah, but your landlord can require it as part of your lease agreement.

Even if you are not required to have renters insurance, it’s a smart investment. If you are faced with damages or liability while you are living in your rental, you won’t want to have to pay for everything out of pocket.

Utah renters pay an average of $107 each year for renters insurance, which is $52 less than the national average. In general, that means that you will pay less than $10 a month for what could amount to thousands of dollars of covered costs after a disaster.

How to build a Utah renters insurance policy

The first thing you will have to do to build your Utah renters insurance policy is create a personal asset inventory of all your appliances, electronics, furniture, and other valuable items. You should try to record as many details as you can about each item, including:

Quantity

Purchase date

Purchase price

Brand

Model number

Serial number

Take pictures of each item as you record it. If you need to file a claim in the future, having pictures will make the process easier.

Choose a personal liability limit. This limit is the maximum amount that your insurer will pay toward any liability costs you owe when someone is injured on your rental property. Sometimes your landlord will require a certain limit, but you may be able to choose a low limit to decrease the cost of your policy.

Actual cash value vs replacement cost

Another thing to consider when building your renters insurance policy is whether you want a policy that covers the actual cash value (ACV) or the replacement cost of items that are destroyed or damaged.

ACV coverage will pay for the value of an item at the time of loss. This means that, as your belongings depreciate over time, the amount you will be paid if they are damaged by a covered peril also decreases.

However, choosing ACV coverage may be a good option for you since it will reduce the annual cost of your policy.

On the other hand, replacement cost coverage will pay for the whole cost of purchasing a replacement no matter how much the original has depreciated. Replacement cost coverage can increase the amount your insurance pays you after disaster strikes, but it will increase the price of your policy.

MORE:

What does actual cash value coverage mean on insurance?

How to find cheap renters and car insurance

Though

renters insurance

is relatively cheap to begin with, you can make it even more cost-effective when you bundle it with your

car insurance

By bundling, you can save anywhere between 5% and 25% on each policy and may even pay less for your renters insurance than you save on your auto coverage. In other words, you might be able to get your renters insurance for free just by bundling it with your car insurance!

The easiest way to get the best bundling discounts is to let

Jerry

do the work for you. As a licensed broker, the Jerry app will quickly get you the best quotes from top companies and take care of all the paperwork when you choose a bundle.

“
Jerry
was wonderful! I used it for my auto and renters policies. I trusted it so much that I signed up my homeowners insurance under Jerry as well. All of the agents are amazingly nice and knowledgeable.” —Mary Y.

Is renters insurance worth it?

Renters insurance is worth it. For fewer than $20 a month in most cases, it provides coverage for your belongings, personal liabilities, and loss of use after a destructive disaster.

What is the average cost of renters insurance in Utah?

The average Utah renter will pay $107 each year for their insurance policy. This is $52 lower than the national average cost, which makes renters insurance an even smarter purchase for those living in Utah.

You could save 15% or more on renters insurance by bundling

Bundle your renters and auto insurance with Jerry and save!

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