The real estate industry seems to go through stretches of time in which consumers are looking to either rent or buy. Presently, it’s more of the former, as noted recently through polling data conducted by the Federal Reserve Bank of New York.
When renters were asked what factors would propel them to continue doing so, rather than purchase a home, some of the most common responses included having too much debt, not making enough money and insufficient credit, the survey revealed.
Despite the uptick in renting, there’s something that a lot of people are not complementing with their apartments and condos, according to the Insurance Information Institute, that being renters insurance.
Approximately 37% of renters have coverage for their dwelling, based on new analysis conducted by ORC International on behalf of the III. To put this into better perspective, 95% of homeowners have property insurance.
Jeanne Salvatore, senior vice president and chief communications officer of Selective Insurance Company, indicated that it’s somewhat surprising that more people don’t have coverage, given its affordability and ability to repay individuals who experience loss.
“Renters insurance provides a very important financial safety net when there is a disaster,” said Salvatore. “And, renters insurance is relatively inexpensive – the average cost of a renter’s policy is only $187 per year, or less than four dollars per week.”
She added that one of the elements that may be factoring into a fairly low percentage of renters not having coverage is the misperception that their landlord’s insurance policy provides for their losses as well. This type of coverage insures the structure of a residence, not the belongings that tenants have.
Renters insurance also provides protection for possessions that are stolen. Policyholders are reimbursed for the cost of their belongings accordingly.
For more information on renters insurance and the difference between actual cash value versus replacement cost, be sure to contact RC4 Insurance Agency, LLC today.
Article From Selective Insurance
