In July, Apartments.com conducted a survey to apartment hunters across the country to find out if they protect themselves with renters insurance. Despite the fact that renters are 50 percent more likely to experience theft than those who own homes, nearly 70 percent of survey respondents said they do not carry renters insurance. The top reason apartment seekers gave for not getting insured was that they thought it was too expensive followed by many who did not know it existed.
While nearly a quarter of apartment hunters are under the assumption that renters insurance is too rich for their blood, the average premium is less than $200 a year and even the majority of survey respondents who are insured said they pay an average of $12.50 a month or less. Most Americans spend more than that on their morning coffee.
It seems like a small price to pay taking into consideration that a typical policy covers $15,000 in personal belongings and several hundred thousand in liability and one in 10 survey respondents indicated they have had to use their renters insurance at one time or another.
While a large percentage of apartment dwellers surveyed are not carrying renters insurance, 33 percent are and list the most compelling reasons for doing so as protection against:
- Theft (79 percent)
- Fire/Lightening (71 percent)
- Water Damage (52 percent)
- Weather (e.g. Hail, Windstorm) (41 percent)
- Smoke Damage (41 percent)
From the survey results, it is also clear that management companies and landlords understand the value of renters insurance. While most would likely prefer residents to carry renters insurance, nearly 20 percent of survey respondents said it is mandatory at their apartment community.
Do you think renters insurance should be mandatory? Do you require your residents to carry renters insurance? If so, what has the response been?
It’s amazing how few renters ever bother to get renters insurance. I have been a landlord with a half dozen units for about 5 years, and I don’t think I have ever had one tenant get it. Considering how cheap the insurance is, I would expect more apartment dwellers to get it.
Thanks for the article.
Very good article! We are using these insights to assist our on-site team in recognizing the importance of our new initiative to require liability insurance for all renters – prospects and residents – at all of our sites effective 01-01-11.
Most people do not take advantage of this cheap insurance yet it is readily available. I think the public needs education on how they can benefit from such coverage incase of a loss. Thanks for sharing a good article.