Almost 25 million U.S. families renting homes do not have adequate insurance coverage leaving them vulnerable to serious property and liability losses. Studies find that the majority of renters are not aware of or do not understand the property and liability risks they face without insurance. In fact, 67% of U.S. families that rent lack coverage. Among respondents who said they don’t have renters insurance, 26% feel that coverage is too expensive and another 17% say they didn’t know they needed it. Many renters mistakenly assume that they are covered under their landlord’s insurance policy following a claim or a loss.
If you are a renter, here are some questions to ask yourself when thinking about renters insurance.
Do you own valuable or high-tech possessions?
Most likely you do have things such as TV’s, DVD players, digital cameras and video recorders, computers video game players, etc. Not only do the majority of people own many different electronics, but they also own numerous exercise machines and sporting good equipment. Also, things like expensive jewelry may be a factor in your decision to buy renters insurance (although many pieces should be insured separately). The prices of these things add up quickly if you had a total loss.
Do you own a pet?
Renters who have pets are more likely to face a liability exposure, i.e. the dog biting a visitor. Renters with pets are actually more apt to not have renters insurance, but are among the top for potential risks.
Do you run a business out of a rented property?
If so, renters insurance isn’t the only protection you need, you may also need a separate business policy.
Do you have college students that rent?
Even if you personally have a homeowners policy, your children that are renting off-campus apartments at college may not be covered, as opposed to them living on-campus. Students who are renting should be encouraged to purchase renters insurance for their sake and for yours.
Do you live in a flood zone?
If so, you need to purchase a separate flood insurance policy for the contents of your home. There are policies available specifically for renters.
So for those of you that rent, or know anyone that rents, make sure you have some type of insurance to cover your belongings, and you personally.
Statistics from the Trusted-Choice sponsored study.
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