FRIDAY, SEPTEMBER 13, 2013
Every year, millions of young people are moving into apartments either during college or immediately after. Unfortunately, the majority of these young people have never heard of or do not understand the need and/or benefits of renter's insurance. The article below, written by the editors of the "IRMI Personal Lines Pilot," gives excellent insight into the benefits of renter's insurance.
A new survey commissioned by Insurancequotes.com indicates that only 34 percent of all American renters have renters or contents insurance. Many of these uninsured respondents believe that this coverage is too expensive. However, renters insurance is quite inexpensive. According to the National Association of Insurance Commissioners, the average premium is only $185 per year.
Another reason many renters do not procure renters insurance is that they believe that their landlord's insurance covers their personal property. If the renter's apartment and its contents are decimated by a tornado, the apartment owner will not be not responsible for damage to any occupant's personal property. This is why a renter’s policy is essential. This policy also covers loss of use in the event of a major loss. Thus, the insurer would pay for the necessary hotel costs until the insured moves into another apartment. In addition, the policy also provides personal liability coverage.
Some renters, such as older college students, may also mistakenly believe that their personal property is covered by their parents' homeowners policy. However, if their apartment is their permanent address, even though their parents may help support them as students, they generally are not considered an insured under their parents' homeowners policy.
Many uninsured renters are young people who may not realize the value of their clothing, furniture, laptops, and stereos. This is particularly true as they get older and gradually accumulate more personal property. In addition, many tenants own valuable jewelry, which can be endorsed onto the contents policy via the scheduled personal property endorsement.