The Insurance Information Institute conducted a survey in 2014 and found that 37% of renters do not have renters insurance. Is this surprising to you? We were taken aback, so we conducted our own research to determine why nearly half of renters do not secure their belongings. We were once more surprised by what we discovered because the majority of the reasons tenants gave for not purchasing renters insurance were all misconceptions and myths.
On the off chance that you’re a leaseholder and you are perusing this article, you might inquire as to why we care whether tenants get protection. After all, aren’t we primarily a service for landlords? Yes, in some way. We definitely assist landlords. Yet, we were tenants once as well as were most landowners.
We also care a lot about our renters, which is why we made many of our services specifically for renters. You have possessions, and the majority of them probably have value. Don’t you want to safeguard those possessions from occurrences beyond your control?
As a result, we created this blog to hopefully assist renters like you in clearing up any confusion so that you can reevaluate whether renters insurance is necessary. The top five reasons given for not purchasing renters insurance are as follows:
- My landlord’s insurance covers me
- Renters insurance is just too expensive
- My belongings aren’t worth insuring
- It’s just stuff and I can always replace it
- It takes too long
Let’s discuss each one separately:
1. My landlord’s insurance covers me
That simply isn’t true. The majority of landlord policies only cover two things: 1.) the actual design of the structure, and 2.) obligation would it be a good idea for someone somebody be harmed on the property (not inside your rental unit). His or her policy doesn’t cover much for your personal belongings or liability in your space. The only exception to this rule is when the landlord caused damage to your personal property (for example, he knew about a leaking pipe but didn’t fix it in time, and now it has ruined all of your clothes). In that case, you might be able to get reimbursed through the policy of your landlord. However, if the property were to flood as a result of a sudden pipe burst, fire, vandalism, or theft, you would not be covered.
There’s likewise the way that a landowner doesn’t claim any of your possessions. Therefore, even if he wanted to assist you and file a claim for your belongings, the insurance company would probably conclude that the landlord does not have an “insurable interest” in the stolen, damaged, or lost property. He would then be turned down, and you would also be turned down.
It is also essential to keep in mind that landlords are not required by law to have an insurance policy for themselves. Many tenants may believe that coverage is generally available when it is not. However, even if the landlord had a policy, it would not cover your personal possessions.
2. Renters’ insurance is just too expensive.
Did you know that renters insurance can be purchased for as little as fifty cents a day? In fact, renters insurance premiums nationwide average $12 per month. That is just $144 each year, under a calfskin coat (and that is only one coat, not your whole assortment of garments in the event that you expected to supplant them all). The typical policy covers liability for $100,000 and property for $30,000, respectively.
Additionally, you can adjust the total cost by pulling levers. You can change the deductible (when you make a case, the sum you pay before the insurance transporter pays anything) – the higher your deductible, the lower your yearly or regularly scheduled payment installments. You can also alter the total amount of coverage you want or need. A lower annual or monthly premium is also a result of a lower property and liability coverage.
Instead of thinking that insurance is too expensive, I would argue that replacing all of your belongings out of pocket at once is too expensive.
3. My belongings aren’t worth insuring.
You have a love seat you’re perched on, a television opposite you, and likely a PC or tablet that you’re perusing this blog from. There’s a decent opportunity, you’ve likewise got some pleasant dress hanging in your storeroom, many shoes, and pleasant gems or a watch. You might think that none of those are valuable because they were all “hand-me-downs.” It’s tempting to focus on how much you paid, but you should really consider how much it would cost to replace those things.
Therefore, even if your parents upgraded their television, you would still want to replace it if it were stolen, wouldn’t you? Additionally, you ought to take into account that replacement cost.
4. It’s just stuff and I can always replace it
Sadly, this isn’t accurate by the same token. Yes, you would be covering your belongings. However, it goes beyond that. Let’s say you have a favorite rug. One of those rugs features a lion’s head on one side. Your companion comes over, stumbles on your lion head floor covering, and breaks a leg. When you receive the $30,000 in medical bills, it’s no longer just stuff. You need to keep in mind that you’ll have guests over who might hurt themselves due to a strange piece of furniture, unusual placement of the furniture, or even drinking too much wine.
5. It takes too long.
We must credit those who deserve it. This is definitely true. Anything that takes more than five to ten minutes may be considered excessive in today’s world. However, given what you now know from the preceding, don’t you think it’s worth the five minutes to feel and actually be protected?
Are you changing your mind? We hope so, as renters insurance is necessary.
Get a quote from Triton Insurance Group in a matter of minutes.