Why do so few renters have insurance?

Did you know: While 95% of homeowners have a homeowner's insurance policy, only 37% of renters have renter's insurance, according to a 2014 Insurance Information Institute poll conducted by ORC International

One reason is that some tenant’s may assume they are covered under home owner’s policy. Reason two; tenants are unaware of how much they have in personal property. If you add up the value of just your clothing and electronics, it probably wouldn't take long to get into the thousands of dollars. The third but most important reason is liability: If someone is injured in your house – a friend, neighbor, or the pizza delivery person – they could sue you. So you think you don’t need a renter’s insurance policy? Well, here are six good reasons why you should have a renter’s insurance policy!!!

1. It's affordable.

On average a renter’s insurance policy with 20K in personal property is $200 a year, $16 a month. There are other factors that will depend on policy premium including amount and coverages chosen.

2. It covers losses to personal property.

Renter’s policy covers personal property losses examples: clothes, jewelry, luggage, computers, furniture, and electronics. Don’t own much? Well it can add up faster than you think too much more than you realize!!! According to esurance.com, the average renter owns about $20,000 worth of personal property.

A Renter’s policy will cover losses to personal property form perils:

  • Damage caused by aircraft
  • Damage caused by vehicles
  • Explosion
  • Falling objects
  • Fire or lightning
  • Riot or civil commotion
  • Smoke
  • Theft
  • Vandalism or malicious mischief
  • Volcanic eruption
  • Weight of ice, snow or sleet
  • Windstorm or hail
  • Damage from water or steam from sources including household appliances, plumbing, heating, air conditioning or fire-protective sprinkler systems

Note: Losses resulting from floods and earthquakes are not covered in standard policies. A separate policy or rider is required for these perils. In addition, a separate rider might be needed to cover wind damage in areas prone to hurricanes. And renter’s insurance policies don't cover losses caused by your own negligence or intentional acts. For example, if you fall asleep with a lit cigarette and cause a fire, the policy most likely will not cover the damage.

 3. Your landlord might require it.

It is becoming more standard that landlords are requiring their tenants to have renter’s insurance. A growing number of insurance companies are requesting the insured of HO2 policy’s to request their tenants to carry a renter’s insurance policy to help shift that liability off of the insured and onto the tenant where the responsibility of the risk actually lies.

4. It provides liability coverage.

Liability coverage covers losses due to accidental injury to someone visiting your home or a covered person injures someone. It pays any court judgments as well as legal expenses, up to the policy limit.

5. Its covers your belongings when you travel.

Travel any? Worry about your property? Well renter's insurance has you covered. A renter’s insurance policy covers your personal belongings, whether they are in your home, car, or with you while you travel. Your possessions are covered from loss due to theft and other covered losses anywhere you travel in the world. Check your policy or ask your insurance agent for details on what constitutes "other covered losses."

6. It may cover additional living expenses.

If the unfortunate happens like flood or fire and your rental in uninhabitable your renter’s insurance policy offers additional living expense coverages. This means your policy will pay for you to live temporarily somewhere else while your rental is being repaired.

Explore the Insurance side of HOMESPOT here

Have questions call Roxanne today 575-356-5639