All You Need To Know About Renters Insurance in Massachusetts

all-you-need-to-know-about-renters-insurance

You must have heard the word renters insurance, but probably do not fully grasp what it entails. Or you live in Massachusetts and you are looking for detailed, comprehensive information on renters insurance in Massachusetts.

Trust me, you are exactly at the right place, as Expaat has thoroughly examined various renters insurance in Massachusetts as well as broken down every part of the terminology in this comprehensive and definitive article. Just read on!

What is Renters Insurance 

Renters insurance form and dollars on the table

Renters insurance, sometimes known as tenants’ insurance, is an insurance policy that provides some of the benefits of homeowners’ insurance but does not cover the house or structure, with the exception of minor improvements made by the tenant. 

It includes liability insurance, as well as coverage for the tenant’s personal property against specified risks such as fire, theft, and vandalism. It also covers fees if the house becomes uninhabitable.

The Importance of Renters Insurance

importance-of-Renters-Insurance

A landowner’s insurance coverage covers the majority of rental properties. Unfortunately for tenants, the landowner’s insurance only covers the components of the building for which the owner is responsible, such as external buildings, sewers, and common spaces. 

The protection ends where the landowner’s property ends, which means you’ll need renters insurance to protect yourself, your guests, and the items inside your apartment.

The average American renter owns around $20,000 in personal goods. Apartments are also 25% more likely to be burglarized than single-family homes. When your flat is burglarized, for example, neither your landlord nor his insurance company is responsible for funding the cost of replacement. 

A renters insurance policy is required to safeguard your personal belongings from burglary, fires, and other perils.

What You Should Know About Renters Insurance in Massachusetts

Renters insurance is an inexpensive way to safeguard your assets against unanticipated calamities such as fires, burglaries, and damage caused by extreme weather conditions. Renters make up 33.5% of the Massachusetts population. The state’s average monthly rent is $1,360.

A conventional renters insurance policy covering $20,000 in personal property, $100,000 in liability coverage, and a $500 deductible costs $11 per month or 0.84% of the average monthly rent.

Renters Insurance in Massachusetts Average Cost

Renters insurance in Massachusetts costs an average of $138 per year, which is $22 less than the national average. 

A renter in the state typically pays around $11 per month for premiums that include $20,000 in personal property coverage, $100,000 in liability coverage, and a $500 deductible. This is $2 less than the national average per month.

Renters in Massachusetts can save money on renters insurance by comparing quotes from several companies. Our typical renter can save $51 per year by choosing State Farm, which has the cheapest coverage at $115 per year, over Allstate, which has the highest average cost at $166 per year. This equates to a monthly savings of around $4.

What Does Massachusetts Renters Insurance Typically Cover?

In Massachusetts, standard renters insurance covers four fundamental incidents. Personal property coverage, liability insurance, medical payments, and supplementary living expenditures are among them. Before getting renters insurance, determine what is and is not covered by your policy.

Some Massachusetts renters insurance providers offer supplementary coverage for natural disasters such as windstorms and hail.

What Massachusetts Renters Insurance Typically Doesn’t Cover

Renters Insurance

Despite covering a variety of crises, Massachusetts renters insurance may fail to protect you in certain instances. The following are examples.

Floods: 

Water damage caused by malfunctioning pipes or water mains should be covered by your insurance. Flooding caused by natural calamities such as a hurricane or downpour, on the other hand, is typically excluded. Because storms and floods are regular in Massachusetts, property owners should consider purchasing flood insurance via the National Flood Insurance Program (NFIP).

Structural Damage: 

While renters insurance may cover all of your personal belongings, it does not cover damage to your rental’s structure and frame. Your landlord should be held accountable for these damages.

Expensive things, such as laptops and jewellery, are frequently excluded from renters insurance coverage. If you wish to protect these products, you may have to pay more.

While earthquakes do occur in Massachusetts, they are not covered by ordinary renters’ insurance policies. You may need to purchase additional coverage for this type of situation.

Roommate Belongings: 

Unless specifically stated in your policy, your renters insurance coverage will not cover any damaged property belonging to your roommate. Your roommate should get their own insurance.

Before acquiring a policy, always read the tiny print to understand what it covers. If you have any questions, ask your agent because your claim may be refused if you do not completely grasp your policy.

What Factors Influence Massachusetts Renters Insurance Cost?

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The typical monthly cost of Massachusetts renters’ insurance is determined by various factors, including deductible, location, and coverage level. It is critical to keep these considerations in mind while you look for insurance.

Location: 

If your rental is in a location where there is a high rate of theft or extreme weather, your premium may be higher.

Coverage Amount: 

The bigger your coverage amount, the more your policy will cost. Before deciding on a firm, figure out how much it would cost to replace your property.

Deductible: 

Your deductible is the amount of money you must pay out of pocket before your insurance company will begin paying out on your claim. Choosing a policy with larger deductibles will result in a lower monthly renters insurance rate. A lower deductible equals a higher monthly premium because it covers more of the cost of replacing your damaged belongings.

Actual Cash Value (ACV) vs. Replacement Cost Value (RCV): 

Insurers frequently repay their clients using actual cash value (ACV) or replacement cost value (RCV) assessments. ACV policies reimburse you depending on the current value of your insured property. RCV plans are more expensive because they cover the complete cost of replacing your belongings if they are damaged.

Credit Score: 

Renters insurance premiums in Massachusetts cannot be determined using credit ratings. The majority of other states will consider this when evaluating policy costs.

List of the Top 10 Renters Insurance Companies in Massachusetts

Renters insurance form and dollars on the table

When you purchase coverage from a large insurer, you may be confident that the company is financially solid enough to pay out your claims.

Below is a refined list of the top 10 renters insurance companies in Massachusetts

1. MAPFRE Insurance

Mapfre provides auto insurance with numerous coverage options and incentives. Although the company has a low number of auto insurance complaints filed with state authorities, it only sells auto insurance in a few states. Mapfre issues with customer service when it comes to house insurance.

Pros

  • The website is in Spanish.
  • There are numerous coverage options and savings available.
  • There have been many fewer complaints about auto insurance to state regulators than expected.

Cons

  • Complaints regarding house insurance to state authorities have been more than expected.
  • Not accessible to all states in the US.

2. Liberty Mutual

Liberty Mutual Group is an American diversified worldwide insurer and the country’s sixth-largest property and liability insurer.

Based on 2020 revenue, it ranks 71st on the Fortune 100 list of the largest firms in the United States.

It is headquartered in Boston, Massachusetts, and its emblem features the Statue of Liberty (officially Liberty Enlightening the World). It employs over 45,000 people in over 900 sites worldwide. Liberty Mutual Insurance has $156.043 billion in consolidated assets, $128.195 billion in consolidated liabilities, and $48.2 billion in yearly consolidated revenue as of December 31, 2021.

3. Safety Group

​​In the United States, Safety Insurance Group, Inc. offers individual passenger and commercial automotive insurance, as well as homeowner insurance.

4. Chubb

It is a global supplier of insurance products encompassing property and casualty, accident and health, reinsurance, and life insurance, and the largest publicly traded property and casualty firm in the world.

Currently, it is present in 55 countries and territories, as well as the London Lloyd’s insurance market. Chubb’s clients include major enterprises and small businesses, as well as individuals and insurers looking for reinsurance coverage.

It offers commercial and personal property and casualty insurance, as well as personal accident and supplemental health insurance, as well as reinsurance and life insurance.

5. The Andover Companies

Since 1828, The Andover Companies has provided high-quality insurance cover. For nearly a century, The Andover Companies has only sold coverage through independent agents. The Andover Companies is dedicated to offering competitive, low-cost goods that are suited to the needs of homeowners, renters, and business owners. 

They offer excellent customer service and claim help. A.M. Best, an independent insurance rating firm, has continuously given The Andover Companies the highest possible grade (A+ Superior). This means you can rely on them to be financially stable and dependable.

6. Arbella Insurance Group

Arbella Insurance Group is a regional property and casualty insurance firm located in Quincy, Massachusetts, that provides business and personal insurance throughout Massachusetts and Connecticut, as well as commercial insurance in Rhode Island and New Hampshire.

7. Amica Mutual

Amica Mutual Insurance Business is a mutual insurance company established in Rhode Island that provides auto, home, and life insurance.

A.T. Vigneron created Amica in 1907, first offering auto, fire, and theft insurance. Amica has now grown to provide auto, home, and life insurance, as well as owning a number of subsidiary insurance firms. It is the oldest mutual vehicle insurance in the United States.

8. MetLife

Is the holding company for the Metropolitan Life Insurance Company (MLIC), also known as MetLife, and its subsidiaries. MetLife, with 90 million customers in over 60 countries, is one of the world’s largest providers of insurance, annuities, and employee benefit programs. On March 24, 1868, the firm was established. It was placed No. 43 on the 2018 Fortune 500 ranking of the top firms in the United States by total revenue. 

It completed the mutualization process on January 6, 1915, transitioning from a stock life insurance company owned by people to a mutual company functioning without external shareholders and for the benefit of policyholders.

9. State Farm

This is the largest property and casualty insurance carrier in the United States, as well as the largest vehicle insurance provider. It is placed 36th in the 2019 Fortune 500, which ranks American corporations according to revenue.

It sells insurance through exclusive agents (sometimes known as captive agents). Only State Farm agents are permitted to sell State Farm insurance, and their agents are permitted to sell only State Farm goods.

10. Allstate

Since 1967, the Allstate Corporation has been based in Northfield Township, Illinois, near Northbrook. It was founded in 1931 as a division of Sears, Roebuck and Co. and spun off in 1993. In addition, the corporation operates personal lines insurance activities in Canada.

Allstate is a significant firm, and with $39.8 billion in revenue in 2018, it ranks 79th on the 2019 Fortune 500 list of the largest corporations in the United States by total revenue. Its current advertising campaign, which has been running since 2004, asks, “Are you in good hands?” and draws on previous ads depicting a suburban-styled home being protectively cradled in a pair of allegedly massive human hands.

FAQs on Renters Insurance in Massachusetts

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What is the typical cost of Massachusetts renters insurance?

Renters insurance in Massachusetts costs an average of $138 per year, which is $22 less than the national average. A renter in the state typically pays around $11 per month for premiums that include $20,000 in personal property coverage, $100,000 in liability coverage, and a $500 deductible. 19 Apr 2022

Can landlords in Massachusetts mandate renters insurance?

The quick answer is yes. In Massachusetts, a landlord may force a renter to purchase renter’s insurance. Having said that, a landlord can fairly demand a renter to acquire adequate insurance.

What are the three things that renters insurance covers?

Personal property, liability, and additional living expenses are the three categories of coverage that are commonly included in renters insurance.

Is renters insurance really necessary?

If you’re a tenant, getting renters insurance is almost always worthwhile, even if your landlord doesn’t need it. Renters insurance will protect you against catastrophic property damage and related legal obligations at a low cost.

What are the advantages of getting renters insurance?

Renters insurance covers your items against loss, damage, or destruction caused by burglary, fires, tornadoes, and other insured calamities. Furthermore, renters insurance protects your liabilities (as well as your money) if someone is hurt in your rental home or apartment.

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