A recent survey by a national insurance company shows that over 55% of young adult renters do not have renters insurance. A survey was made of over 1000 renters ages 25-35, and 40% of the renters without insurance felt that they didn’t need renters insurance at all. Yet most of those surveyed said that it would cost over $5,000 to replace their belongings if an unfortunate event were to happen, such as a fire, theft or severe weather. Some estimates say that an average two bedroom apartment contains about $30,000 worth of belongings. Small things like clothing, pots and pans, electronics and furniture can really add up.
Most renters don’t realize that renters coverage can be purchased for as little as $20 a month, less than the cost of two movie tickets, or a few coffees or streaming video rentals!
Another misconception by renters is that the landlord of the apartment or rental house has insurance. But it probably only covers the building — not the renter’s belongings or their liability for accidents. If possessions are stolen during a break-in or damaged by a fire or severe weather, a renters insurance policy can allow the renter to recover their value.
A recent fire in Michigan destroyed several apartments in a 12 unit building. The fire started in a bottom floor apartment, and Mashun Lain, a 37 year old mother of three, lived in the apartment above. When the fire broke out at around 5am, Lain and her family were able to escape without injury. But everything they owned was “burnt to a crisp”, she said, and because they did not have renters insurance, Lain said they would have to start over.
She said she regrets not having any insurance on her apartment, and offers advice for other renters.
“I know anything is possible, but you just don’t think this was possible. Make sure you get renter’s insurance because I have to start all over. I don’t have anything. My kids don’t have anything,” she said.
Contact your landlord for more information about obtaining a renters insurance policy. And also remember to notify your insurance company if you move to a new rental property.
More information about rental insurance can be found at the following links:
http://www.foxbusiness.com/personal-finance/2014/02/11/your-guide-to-renter-insurance/
http://money.msn.com/insurance/article.aspx?post=0e844d8e-847c-4735-a77a-088296445712