Though people who rent their homes are aware of the risks, less than 50 percent buy coverage.
The data from the U.S. Census Bureau, in combination with a renters insurance survey performed by Allstate, has shown that only 45 percent of tenants have purchased coverage.
Still, tenants have a fear that fire will destroy their possessions.
Moreover, 54 percent of the survey respondents indicated that it would take a minimum of three years to replace their possessions if they should ever be lost to a fire or other disaster. Though they know the danger is real, they still fail to obtain the coverage that would be needed to protect their belongings.
According to the vice president of the Consumer Household unit at Allstate, Keith Rutman, it is important for tenants to recognize that just because their landlords have coverage, it doesn’t mean that the possessions within the apartments will be covered. In fact, this is quite rare.
He stated that “A landlord may have coverage that can help cover the cost of structural damage to the dwelling if the unexpected happens, but renters may be faced with significant replacement costs for their furniture, clothes, electronics and other belongings.” He also pointed out that on average, a tenant’s home will contain an average value of $30,000 worth of possessions.
When a renters insurance policy is obtained, these possessions are covered against a number of perils.
This includes everything from fire and smoke to water damage, and from vandalism to theft. Should the damage make the home unlivable, renters insurance will also often help to pay for the cost of another rental unit or a hotel room while the repairs are being completed. As with a homeowners policy, tenants can also have liability and guest medical added to their coverage, in case someone else should be injured in the apartment while visiting.
As tenants are also far less likely than homeowners to purchase preventive equipment and systems, such as fire extinguishers or security systems, but are equally as likely to make big purchases, it is highly important for them to cover themselves with renters insurance.