Why do Tenants go without Renters Insurance? – CREPN #40

08 Apr Why do Tenants go without Renters Insurance? – CREPN #40

Why do Tenants go without Renters Insurance? SURVEY; APARTMENT FIRES [x_audio_embed][/x_audio_embed]   In order to:

• Get a License, the law requires you have insurance.
• Get a Loan, the Lender requires you have insurance.
• Lease a commercial space, the Lease requires you have insurance.

What does it take to rent an apartment? Multiple surveys of Renters report that somewhere between 56 to 72% of Renters DO NOT purchase Renters Insurance.  On multiple occasions, I have asked insurance adjusters and firemen what percent they see.  They believe the number is as high as 95% go without insurance.   There are several myths that Renters provide for reasons not to purchase insurance: Myth #1: “I don’t have enough stuff to need insurance coverage.”

• Most people’s belongings are often worth more than they expect. With furniture, electronics,  microwave, appliances, clothing, photos, sports equipment, books, and jewelry; you can easily begin to reach $20,000.

Myth #2: “Since I am a renter, my landlord will cover property damages.”

• If you are not making it clear to tenants in writing at the beginning of their residence, don’t be surprised.

Myth #3: “Renters insurance only covers my personal belongings.”

• Third party liability is typically included for Property Damage & Bodily Injury.

Myth #4: “Renters insurance is too expensive.” *(US News & World Report)

• Average cost $15/month

Q: Why do so many tenants not purchase Renters Insurance? A: Landlords are not requiring Tenants to purchase the coverage. Q: What happens when a tenant catches your building on fire?

• If your tenant has Renters Insurance, and the Rental Agreement holds the tenant responsible, the Renters Insurance will pay for repairs to your property.
• If your tenant does NOT have Insurance, you will have additional costs:
  • Deductible
  • Increased cost of Insurance due to the claim.

If you own multifamily property and do NOT require Renters to carry insurance, I believe you need to ask yourself why. If you own more than 100 units, there is an easy solution. [author title=”About the Author”]]]>