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Renters Insurance:
How it will help you.
Imagine for a
moment that you’ve just returned home from a long day at work to find
that there has been a fire. Everything you own has been destroyed: your
TV, VCR, Stereo, Computers, furniture, clothing, jewelry, DVD and CD
collections. Everything is gone!!
A recently
published national telephone survey of 1,000 Renters indicates that 65%
of these respondents do not have Renters Insurance coverage.
It is amazing
to think that nearly two-thirds of the estimated 81 million people in
the United States who are Renters do not have the proper insurance
coverage. This equates to vast amounts of uninsured assets and personal
liabilities.
There are a
number of reasons why these respondents do not procure Renters Insurance
coverage. They are discussed below.
Myth #1:
Coverage Is Expensive
Many of these
uninsured respondents believe that this insurance coverage is too
expensive. Actually, renters insurance is quite inexpensive. The
average premium is $12 per month for $30,000 in property coverage,
$6,000 in loss of use coverage, and $100,000 in liability coverage.
This premium
is less than three visits to a local Starbucks per month. Renters can
often save even more money on premium by choosing a higher deductible,
such as $1,000.
Myth #2:
Exposure Is Already Covered
Another
reason many tenants do not procure a Renters Insurance policy is that
they believe that their landlord’s insurance covers their personal
property. It is important to note that the apartment owner’s policy
covers only the apartment building, common areas and the apartment
owner’s liability. It does not cover the tenant’s personal
property or liability exposures. If the tenant’s apartment burns to the
ground, the apartment owner is not responsible for damage to any
occupant’s personal property. This is why a Renters Insurance policy is
essential.
Some tenants,
such as older college students, may also mistakenly believe that their
personal property is automatically covered by their parents’ homeowners
policy. (This is normally the case for younger students living in
college dorms because a dorm room is usually considered a temporary
location.) However, if the older student’s apartment is their permanent
address, even though their parents may help support them, they generally
are not considered an insured under the parents’ Homeowners Insurance
policy.
Myth #3:
Coverage Is Unnecessary
Many
uninsured tenants are young people who may not realize the high value of
their clothing, jewelry, furniture, computers, stereos, and extensive
CD, DVD & computer gaming collections. This is particularly true as
they get older and gradually accumulate more personal property.
If you rent
your home you need to have a Renters Insurance policy in place to
protect your valuable personal property. Call us today for a
personalized no obligation quote. Make sure to ask about our
Auto/Renter discount.
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