Survey finds many lack renters insurance

Wednesday, March 13th, 2013 By

Apartment

A recent survey by InsuranceQuotes.com found very few renters have renters insurance. Image from Wikimedia Commons.

A recent InsuranceQuotes.com survey found that only one-third of respondents had renters insurance. While it’s probably a ploy to get more people to buy renters insurance from InsuranceQuotes.com, it does raise the question of why more people should at least think about it.

Renters insurance not carried by most renters

There are damn few things left anymore that don’t require or have some form of insurance industry that springs up around it. Car insurance, home insurance, renters insurance, phone insurance, life insurance, the list goes on.

Pity there isn’t “running out of beer” insurance. Now THAT is insurance worth paying for.

One type, renters insurance, is thought to be drastically underutilized. A recent survey by InsuranceQuotes.com, according to ABC, found 34 percent of respondents actually had it. It usually insures against property loss through theft, fire or natural disasters.

That finding mirrors other surveys, including a 2012 Apartments.com survey, according to Technorati, that found 67 of respondents didn’t have renters insurance, and a 2006 Insurance Council poll that found less than half of renters carried renters insurance, despite more than 90 percent of homeowners doing so, according to US News and World Report.

Not all that expensive

Most people would cite cost as a reason not to get renters insurance. In the InsuranceQuotes survey, according to Fox Business, it was the second most-commonly cited reason, behind an apartment already having good security and a landlord already carrying insurance.

Apartments.com found in its 2012 survey, according to the press release on PR Newswire, cost of renters insurance was cited as the most common reason not to carry it. Not knowing it existed was the second.

That’s pretty dangerous given that Apartments.com cites Bureau of Justice Statistics findings that renters are 50 percent more likely to endure a break-in than homeowners. Landlord’s insurance, according to ABC, does not cover a robbery and for the most part, doesn’t help renters out in the least.

However, renters insurance is usually fairly cheap. The National Association of Insurance Commissioners found an average cost of $185 per year. Apartments.com found the average monthly cost among respondents in its survey was $12.50 per month, though it varies by policy and where a person lives. Some policies, according to US News and World Report, can range up to $300 per year.

Shop around

Still, that’s less than $30 per month. Not exactly pleasant, but not enough to send most people running for payday loans to cover their insurance bill.

Just as with any other type of insurance, people looking into renters insurance should shop around for policies. Examine differences in coverage, deductibles and naturally look at the annual and monthly cost. People with valuables they want to guard beyond electronics and furniture can add insurance riders for things like jewelry and so forth if desired, according to ABC.

Sources

ABC

Technorati

US News and World Report

Fox Business: http://www.foxbusiness.com/personal-finance/2013/03/11/renters-insurance-why-americans-dont-have-it/

PR Newswire: http://www.prnewswire.com/news-releases/apartmentscom-national-survey-reveals-the-majority-of-apartment-dwellers-are-living-without-renters-insurance-99219624.html

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