Making Renters Insurance a Priority Can Save You Thousands

homeowners insurance

Renters insurance is one of the most overlooked forms of insurance available despite the tremendous value it provides to individuals who rent homes and apartments. Reports show that, unlike homeowners insurance, only a small percentage of renters purchase this type of coverage.

Unfortunately, those who go without renters insurance could be doing themselves a major disservice in the long run. Like homeowners, purchasing this type of coverage could save renters thousands if their homes were impacted by a break-in or natural disaster.

Homeowners Insurance Policyholders Three Times More Than Renters Insurance

A 2012 Insurance Information Institute poll conducted by ORC International revealed a startling disparity between individuals owning renters insurance and homeowners insurance policies.

The poll revealed that while 96 percent of homeowners had homeowners insurance, only 31 percent of renters had insurance policies.

While the poll did not explore why renters often overlook insurance for their dwellings, experts say that many bypass coverage simply because their rental properties don’t require coverage.

Others seem to avoid purchase because they believe that their property has its own insurance that covers the property, if damaged. While this is true in most cases (some apartment complexes require renters to cover their units), property insurance usually covers structural damage only.

Benefits of Purchasing Renters Insurance

It may seem redundant to purchase renters insurance for a property that is already covered by an insurance policy, but nothing could be further from the truth. Here are just a few reasons that a renter could benefit from purchasing coverage:

  • Personal belongings covered: While structures are covered under a property’s insurance, your personal belongings aren’t. If you suffer a break-in or a natural disasters impacts your dwelling and destroys personal items, your property usually won’t reimburse you for the loss, but renters insurance will.
  • Loss of use reimbursements: If a tornado or other disaster results in your home becoming uninhabitable, renters insurance will cover loss of use. It pays for time you may spend in a hotel and may even pay the cost of moving into a new place. Some companies reimburse money paid, while others will pay a predetermined amount upfront after a deductible is paid.
  • Coverage is inexpensive: Many people don’t realize that renters insurance is inexpensive when compared to homeowners insurance. According to the Insurance Information Institute, homeowners insurance premiums for 2010 averaged $909, while renters insurance premiums averaged $185 annually.

There’s no doubt that renters insurance can saving thousands on losses one can incur after a break-in or natural disaster. With the cost of coverage being so inexpensive, it only makes sense for renters to take the steps necessary to protect their belongings.

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