There is a lot of confusion within the housing industry when it comes to insurance. Everyone knows they need some kind of homeowner’s insurance, but a large number of homeowners and renters are unsure of what type they actually need or how to go about finding that information.
According to a 2016 Insurance Information Institute poll, fully 95% of all homeowners had homeowner’s insurance, but only 41% of renters were covered by renters insurance. That shouldn’t be the case.
Forbes reports that renters insurance should be sought after for everyone who is living on their own, whether they are renting or not.
“Renters insurance is usually inexpensive and not always required by your building/landlord, whereas homeowner’s insurance is mandatory and traditional insurers can rack up premium prices,” said a spokesperson for Lemonade, a new mobile-only insurance app. “In fact, traditional insurance companies don’t find it’s ‘worth it’ to go after the renter’s market since the costs involved doesn’t justify the relatively low annual premium they’ll charge.”
For traditional homeowners insurance (which is still essential for anyone), the cost of the insurance will vary by the type of property involved and the level of protection the homeowner wishes to purchase, but it usually costs around 0.5% of the property’s purchasing price.
But quality renters insurance can greatly help renters at a fraction of the price. A typical renters insurance policy covers personal property, living expenses, and personal liability including medical expenses and legal costs. Additionally, renters insurance can even cover a person’s items even if they were stolen outside of their property.
Also, one of the most damaging occurrences that can impact a home, a flood, isn’t covered by homeowners insurance, which is why homeowners should look to renters insurance.
“Some policies will cover certain types of water damage, but no homeowners policy will cover flood damage,” said Brenda Edinger, co-owner of America One of Lansing, Inc.
There is no reason so many Americans should continue living in at-risk properties without quality renters insurance policies. Although it’s not required that a person gets renters insurance, if a home is burglarized, there is a flood, or the property is damaged by others, renters insurance can greatly help.
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