TUESDAY, OCTOBER 9, 2018
3 renters' insurance myths & truths, plus 5 top claims in 2017
Myth 1: A landlord's insurance policy will cover a renter's personal belongings in the event of fire or theft. | Truth: While a landlord's insurance policy will likely cover the dwelling and infrastructure of that dwelling, that coverage typically does not extend to the possessions owned by the renter.
Myth 2: Renters' insurance is expensive. | Truth: On average, renters' insurance costs less than $20 per month.
Myth 3: Renters' insurance coverage is limited. | Truth: A renter’s insurance policy typically provides coverage for the loss or destruction of personal belongings in the event of a covered peril such as: theft; fire; lightning; windstorm; hail; frozen plumbing system; vandalism.
With more than 43 million renter-occupied units, the number of renters in the U.S. is near an all-time high, according to data from the U.S. Census Bureau.
However, according to an Insurance Information Institute poll, only 41% of renters carry renters’ insurance, a substantial difference from 95% of homeowners who carry homeowners’ insurance policies.
Common myths about renters’ insurance
Above are three common renters’ insurance myths and truths national insurance companies have identified that insurance agents can share with potential customers.
Renters’ insurance may also provide coverage if:
• A renter is forced to temporarily move out of their home due to a covered loss.
• A person is injured in the renter’s apartment or home and requires medical attention.
• Items a renter keeps inside their vehicle are damaged or lost.
Top renters’ insurance claims in 2017
Based on claims data, the following were the most common renters’ insurance claims submitted by its members in 2017:
• No. 1: theft.
• No. 2: water damage.
• No. 3: fire and smoke damage.
• No. 4: liability.
• No. 5: wind-related.
Now is a good time for P&C agents to educate renters in their community about the cost-effective option of obtaining insurance to cover their property while leasing their home.
Posted 11:40 AM
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