<p><img src="https://static2.businessinsider.com/image/6049323bf196be0018beeb2c-1920/RhinoIns.jpg" border="0" alt="what is rhino insurance" data-mce-source="Kemal Yildirim/Getty Images"></p><p></p><bi-shortcode id="disclaimer" class="mceNonEditable" data-type="pfi"></bi-shortcode><bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><ul class="summary-list"><li>Rhino Insurance lets you avoid putting down a security deposit when you rent an apartment.</li><li>If your landlord accepts Rhino, you can skip the security deposit and pay a low monthly fee instead.</li><li>Rhino allows renters to have more cash on hand for other expenses like renters insurance.</li><li id="recirc"><a href="https://www.businessinsider.com/personal-finance/best-renters-insurance-companies" target="_blank" rel="noopener">See Insider's guide to the best renters insurance companies </a></li></ul><bi-shortcode id="table-of-contents-sticky" class="mceNonEditable" data-type="h2">Table of Contents: Masthead Sticky</bi-shortcode><p>The pandemic highlighted America's lack of affordable housing, with many Americans unable to make rent and facing evictions due to coronavirus layoffs, furloughs, and expended emergency savings.</p><p>One of the many initial barriers to affordable housing is the standard requirement to put down a security depositgenerally equal to one month's rentalong with paying first and possibly last month's rent. If you live in New York, you could easily have to pay $1,900 in rent and an additional $1,900 security deposit for a studio or small one-bedroom apartment. That doesn't include the cost for movers and furnishing your apartment.</p><p>Rhino Insurance provides a way to get around the cash security deposit requirement, potentially making it easier to secure a rental. Here's what you need to know.</p><div><style> #div-gpt-ad-1579713650634-0 > div > iframe { width: 100% !important; min-width: 300px; max-width: 595px; } </style><script async src="https://securepubads.g.doubleclick.net/tag/js/gpt.js"></script><script> window.googletag = window.googletag || { cmd: [] }; googletag.cmd.push(function () { googletag.defineSlot('/1035677/Business_Insider_', [[1, 1], [300, 139], [595, 139], [300, 250], [595, 250], [300, 360], [595, 360], [300, 475], [595, 475]], 'div-gpt-ad-1579713650634-0') .addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().setTargeting('category', ["Banking"]).setTargeting('subcat', ["Savings Accounts"]).setTargeting('post_id', []) .setTargeting('post_url', []) .setTargeting('keyword', []) .setTargeting('company-product', []) .setTargeting('post_title', []); googletag.enableServices(); }); </script><!-- /1035677/Business_Insider_ --><div id="div-gpt-ad-1579713650634-0"> <script> googletag.cmd.push(function () { googletag.display('div-gpt-ad-1579713650634-0'); }); </script></div></div><h2><strong>What is Rhino Insurance'</strong></h2><p>Martha Dreiling, senior vice president of Operations at <a href="https://www.sayrhino.com/" target="_blank" rel="noopener">Rhino</a>, said the company was created in 2016 "to create a financial product that was better than a cash security deposit because housing affordability was one of the largest issues facing our country."</p><p>Dreiling says Rhino's mission is to make housing more affordable. <a href="https://nlihc.org/resource/atlanta-city-council-passes-ordinance-aimed-lowering-security-deposit-barrier">Atlanta</a> and <a href="https://www.cincinnati.com/story/news/2020/04/14/cincinnati-rental-law-makes-paying-security-deposits-easier/2988887001/">Cincinnati</a> passed ordinances to offer residents alternatives to cash security deposits like Rhino to address the lack of affordable housing. Dreiling said that Philadelphia and Baltimore are considering similar legislation</p><p>Rhino found that renters generally pay rent on time and typically don't go out of their way to damage propertytwo of the main risks that a security deposit is meant to protect against.</p><p>Rhino is a licensed insurance agency in 48 states, and it's available for landlords and property management companies with rental apartments and rental homes.</p><h2><strong>How does Rhino Insurance work'</strong></h2><p>With Rhino, instead of paying a security deposit to your landlord, you pay about $5 to $10 a month for an insurance policy that covers your rental for damage or lost rent. Basically, it frees up money for you by requiring a low monthly payment instead of a lump sum, and it provides the coverage the property owner requires.</p><p>To use Rhino, landlords and property management companies must agree to accept Rhino instead of cash deposits. Rhino allows renters more cash flow to furnish their apartment, pay for movers, or invest the cash elsewhere.</p><p>Dreiling said veterans, single parents, and those leaving domestic abuse have even used Rhino to start a new life. If you have the cash but would prefer to use it to furnish your apartment or invest it, you can use Rhinoso long as the landlord or property management accepts it.</p><p>Monthly payments are risk-based, depending on the renter's <a href="https://www.businessinsider.com/personal-finance/how-to-improve-credit-score" target="_blank" rel="noopener">credit</a> using an averaging tool. Dreiling said that although <a href="https://www.businessinsider.com/personal-finance/what-is-a-fico-score-how-is-it-calculated" target="_blank" rel="noopener">FICO scores</a> are used, they are not the only factor. She also said an eviction is not considered unless the landlord obtained a judgment and it's part of the public record on your FICO score.</p><p>Your monthly rate is also tied to the amount of the security deposit, since a $2,000 security deposit isn't the same risk as a $5,000 security deposit.</p><h2><strong>How is Rhino different from renters insurance'</strong></h2><p>On a basic level, renters insurance covers your belongings from <a href="https://www.businessinsider.com/personal-finance/do-i-need-renters-insurance#what-does-renters-insurance-cover'" target="_blank" rel="noopener">theft, damage, and unexpected events</a>. It's an insurance policy you pay for on an annual or monthly basis. <a href="https://www.businessinsider.com/personal-finance/do-i-need-renters-insurance" target="_blank" rel="noopener">Renters insurance</a> is not required by state law, but some landlords require it in the lease.</p><bi-shortcode id="related-article-module" class="mceNonEditable" data-type="5ef20caa5af6cc45d660f576" data-title="The best renters insurance of 2021" data-url="https://www.businessinsider.com/personal-finance/best-renters-insurance-companies" data-thumbnail="https://i.insider.com/604157da2dc901001835580b" data-shortcode-display-text="Related Article Module: The best renters insurance of 2021"></bi-shortcode><p>Rhino is security deposit insurance. Instead of paying the security deposit amount in cash at the time of the leaserenters pay a monthly fee to Rhino, averaging $5-10 a monthto cover the security deposit.</p><p>Using Rhino frees up renters' cash so that they can afford renters insurance and other moving expenses. So you shouldn't think of Rhino as an alternative to renters insurance; it's just an alternative to paying a security deposit.</p><p><em>Ronda Lee is an associate editor for insurance at Personal Finance Insider covering life, auto, homeowners, and renters insurance for consumers. She is also a licensed attorney who practiced litigation and insurance defense.</em></p><bi-shortcode id="related-content-module" class="mceNonEditable" data-type="more-on-homeowners-insurance" data-sheetname="More on Homeowners Insurance">Related Content Module: More on Homeowners Insurance</bi-shortcode><p><a href="https://www.businessinsider.com/personal-finance/what-is-rhino-insurance#comments">Join the conversation about this story »</a></p>
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