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Understanding Insurance: Renter’s Insurance


 

By Terri Powers

 

The statistics are compelling.  “3 in 10 renters have renters insurance”, cited one study.  Another source commented, “Do you belong to the 2/3 of those who are renting an apartment or house and do not carry renters insurance?”  

 

A recent analysis revealed that rented households experienced 192 property crimes per 1,000 households while homeowners experienced 137 property crimes per 1,000. This makes renters 40% more likely to experience property crimes than homeowners.

 

It’s clear that renters are unduly exposed and run the risk of substantial losses when uninsured.

 

Here’s the kicker, renters insurance is affordable.  The Insurance Information Institute says the average annual premium for most renters is less than $200 a year! 

 

In the event you fall into that 40% category of people that become the victim of a burglary, renters insurance can be essential coverage.  If you are the victim of a fire, you may find the need for renters insurance even more important.  What if your neighbor in the adjacent dwelling causes a fire?  Your property may be damaged by smoke, water or fire.  Now, what if that neighbor is among the 2/3 of renters that do not carry renters insurance?  Who will make you whole?

 

Take the case of “Julie”, whose house was damaged by smoke when her neighbor’s home suffered a severe fire.  The neighbor did not have insurance and everything in Julie’s home was covered with soot, a highly corrosive material.  A claim was filed immediately and a hotel room was arranged for Julie and her son while their home was professionally cleaned – including the ventilation system – which was important as Julie had developed bronchial problems as a result of the smoke.

 

Fortunately, Julie had renters insurance.

 

Renters insurance not only provides vital medical coverage in the case of an on-premises accident but will help in replacing furniture, clothes, pots and pans and others belongings that are damaged in a fire. It can also pay for temporary residence while you look for new quarters or wait for the repairs to your home or apartment to be made.

 

It’s important to note the extent of coverage you have purchased.  Does it provide Actual Cash Value (ACV) or Replacement Cost (RC) coverage?  ACV provides cash reimbursement less depreciation while RC pays to replace the items you have lost at “replacement” value.  RC is more expensive coverage but well worth discussing when you are reviewing policy options.

 

When packaged with an auto policy renters insurance rates drop even further making this insurance an easy and affordable addition.  Many companies also offer a discount on your auto insurance when you purchase a renters policy. 

 

Renters insurance is accessible, relevant and affordable.  Why most renters do not have coverage is a mystery but it’s clear they should and they can just by calling their agent and inviting the conversation.


 

The statistics are compelling.  “3 in 10 renters have renters insurance”, cited one study.  Another source commented, “Do you belong to the 2/3 of those who are renting an apartment or house and do not carry renters insurance?”  

 

A recent analysis revealed that rented households experienced 192 property crimes per 1,000 households while homeowners experienced 137 property crimes per 1,000. This makes renters 40% more likely to experience property crimes than homeowners.

 

It’s clear that renters are unduly exposed and run the risk of substantial losses when uninsured.

 

Here’s the kicker, renters insurance is affordable.  The Insurance Information Institute says the average annual premium for most renters is less than $200 a year! 

 

In the event you fall into that 40% category of people that become the victim of a burglary, renters insurance can be essential coverage.  If you are the victim of a fire, you may find the need for renters insurance even more important.  What if your neighbor in the adjacent dwelling causes a fire?  Your property may be damaged by smoke, water or fire.  Now, what if that neighbor is among the 2/3 of renters that do not carry renters insurance?  Who will make you whole?

 

Take the case of “Julie”, whose house was damaged by smoke when her neighbor’s home suffered a severe fire.  The neighbor did not have insurance and everything in Julie’s home was covered with soot, a highly corrosive material.  A claim was filed immediately and a hotel room was arranged for Julie and her son while their home was professionally cleaned – including the ventilation system – which was important as Julie had developed bronchial problems as a result of the smoke.

 

Fortunately, Julie had renters insurance.

 

Renters insurance not only provides vital medical coverage in the case of an on-premises accident but will help in replacing furniture, clothes, pots and pans and others belongings that are damaged in a fire. It can also pay for temporary residence while you look for new quarters or wait for the repairs to your home or apartment to be made.

 

It’s important to note the extent of coverage you have purchased.  Does it provide Actual Cash Value (ACV) or Replacement Cost (RC) coverage?  ACV provides cash reimbursement less depreciation while RC pays to replace the items you have lost at “replacement” value.  RC is more expensive coverage but well worth discussing when you are reviewing policy options.

 

When packaged with an auto policy renters insurance rates drop even further making this insurance an easy and affordable addition.  Many companies also offer a discount on your auto insurance when you purchase a renters policy. 

 

Renters insurance is accessible, relevant and affordable.  Why most renters do not have coverage is a mystery but it’s clear they should and they can just by calling their agent and inviting the conversation.


 

Terri Powers, CIC, CPIA is President of Premier Choice Insurance Agency, Inc. in Oregon City and is licensed in Oregon, Washington, and Tennessee. 

Premier Choice Insurance
Agency, Inc.

500 Abernethy Rd, Ste 202

Oregon City, OR 97045

Main office: 503-655-3025
Fax: 503-655-5029

Office Hours:

Mon: 9:00 AM - 5:00 PM
Tues: 9:00 AM - 5:00 PM
Wed: 9:00 AM - 5:00 PM
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Fri: 9:00 AM - 5:00 PM
Sat: Closed
Sun: Closed

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