A recent nationwide survey found that only 34% of tenants carry a Renters policy which means that most renters are taking a financial gamble with all of their belongings. The three leading reasons that respondents gave for not buying Renters insurance show that many people don’t understand what this policy covers – and doesn’t cover: Nearly three in five (57%) felt that their rented home has such effective security that they don’t need protection against losses from theft.
However, without a Renters policy, tenants still remain highly vulnerable to other risks. A fire could damage or destroy their possessions, requiring replacement at a high cost. An accident might leave the unit temporarily unlivable, costing hundreds or thousands in living expenses. An injury to a visitor on the premises could result in costly medical bills – not to mention a lawsuit. The typical Contents policy will provide protection against these losses – and a wide variety of other risks. More than half (52%) believed that they couldn’t afford the coverage.
Among respondents, 21% estimated the annual premium at $1,000 or higher, while another 60% pegged the cost as $250 a year or more. However, according to the National Association of Insurance Commissioners (NAIC), the average Renters policy costs only around $185 a year. Nearly half (48%) thought that the landlord already had coverage. Although the landlord carries insurance in the building itself, the policy does not cover risks to tenants’ property and liability.
There might be other additional benefits as well! In 2009, I had a renters policy. My computer crashed and I had to shell out $1000 for a new one. It was in the trunk of my car (I couldn’t go straight home). I was followed from the store, to a gated facility, where someone popped the lock on my car, then opened the trunk and walked off with my brand new computer, receipt, and purse (with all my belongings, including a camera and GPS). Normally you would think that your items are safe in the trunk at the gym, but since I was followed, the guys knew exactly which car to break into.
I was devastated. I called the credit card companies to cancel my cards and tried to see if the card I purchased the computer on was able to reimburse me. They didn’t actually cover theft out of a car. Neither does car insurance. However, the renters policy I had, that I thought only covered me at home, also covered me in this instance. I paid my deductible and was reimbursed for everything – the cash & gift cards in my wallet, the computer, camera, GPS, even the purse & wallet themselves. Having the renters policy literally saved me thousands of dollars, and I think the total cost for the year was about $202.
Contact your insurance agent to find out how much it’ll be to get you covered!
