Only 41 percent of renters carryrenters insurance, a substantial difference from 95 percent of homeowners who carry homeowner’s insurance policies, according to a new poll from the Insurance Information Institute.
The number of renters has reached a near all-time high of 43 million according to the current population survey/housing vacancy survey at the U.S. Census Bureau.
“Many renters underestimate both the value and affordability of renters insurance,” Mendi Riddle, vice president of product and pricing for Nationwide’s personal lines, said in a release.
“Not only does renters insurance provide coverage for belongings inside the residence should those items be stolen, destroyed or damaged, but the coverage may also extend to personal items renters keep inside their vehicle. Additionally, renters insurance helps pay for covered damage or bodily injury to others caused by an accident that may occur at their residence,” she said in the release.
3 myths about renters insurance
- Myth: A landlord’s insurance policy will cover a renter’s personal belongings in the event of fire or theft.Truth: While a landlord’s insurance policy will likely cover the dwelling and infrastructure of that dwelling, that coverage typically does not extend to the possessions owned by the renter.
- Myth: Renters insurance is expensive.Truth: On average, renters insurance costs less than$20per month.
- Myth: Renters insurance coverage is limited.Truth: A renters insurance policy typically provides coverage for the loss or destruction of personal belongings in the event of a covered peril.
What a renters insurance policy typically covers
- Theft
- Fire
- Lightning
- Windstorm
- Hail
- Frozen plumbing system
- Vandalism
Renters insurance may also provide coverage if:
- A renter is forced to temporarily move out of their home due to a covered loss.
- A person is injured in the renter’s apartment or home and requires medical attention.
- Items a renter keeps inside their vehicle are damaged or lost.
Based onNationwideclaims data, the following were the most common renters insurance claims submitted by its members in 2017:
- Theft (from dwelling or vehicle)
- Water damage (non-weather related)
- Fire and smoke damage
- Liability
- Wind related
“Having to replace possessions such as clothing, furniture and electronics can be very expensive should they be suddenly lost due to a fire or other tragic event,” Riddle said in the relase.
“Renters insurance provides peace of mind allowing renters to keep their lives on track should a major setback occur.”
Expenditures homeowners and renters insurance
The average homeowners insurance premium rose by 3.6 percent in 2015, following a 3.3 percent increase in 2014, according to a January 2018 study by the National Association of Insurance Commissioners. The average renters insurance premium fell by 1.1 percent in 2015 after rising 1.1 percent in 2014, according to the Insurance Information Institute which provided the comparison.
About Nationwide
Nationwide, a Fortune 100 company based inColumbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the U.S. and is rated A+ by both A.M. Best and Standard & Poor’s. The company provides a full range of insurance and financial services, including auto, commercial, homeowners, farm and life insurance; public and private sector retirement plans, annuities and mutual funds; banking and mortgages; excess & surplus, specialty and surety; pet, motorcycle and boat insurance. For more information, visitwww.nationwide.com.
As an insurance expert with a comprehensive understanding of the industry, I'd like to shed light on the key concepts mentioned in the article and provide additional insights to encourage a better understanding of renters insurance.
The article highlights a significant disparity in insurance coverage between renters and homeowners, citing a poll from the Insurance Information Institute. Only 41 percent of renters carry renters insurance, compared to a much higher 95 percent of homeowners with homeowner's insurance policies.
Mendi Riddle, the Vice President of Product and Pricing for Nationwide's personal lines, emphasizes the misconception among renters regarding the value and affordability of renters insurance. She points out that renters insurance not only covers belongings inside the residence against theft, destruction, or damage but may also extend coverage to personal items kept inside the renter's vehicle. Furthermore, it helps pay for covered damage or bodily injury caused by accidents at the residence.
The article dispels three common myths about renters insurance:
-
Myth: A landlord's insurance policy covers a renter's personal belongings in case of fire or theft.
- Truth: While a landlord's policy typically covers the dwelling and infrastructure, it does not extend to the renter's possessions.
-
Myth: Renters insurance is expensive.
- Truth: On average, renters insurance costs less than $20 per month.
-
Myth: Renters insurance coverage is limited.
- Truth: Renters insurance typically provides coverage for the loss or destruction of personal belongings in the event of covered perils.
The article lists several perils that a renters insurance policy typically covers, including theft, fire, lightning, windstorm, hail, frozen plumbing systems, vandalism, and more. It also highlights additional coverage, such as temporary relocation due to a covered loss, medical expenses for injuries in the rented space, and coverage for items kept inside a vehicle.
The most common renters insurance claims, based on Nationwide's claims data, include theft (from dwelling or vehicle), water damage (non-weather related), fire and smoke damage, liability, and wind-related claims.
Moreover, the article touches upon the cost aspect, stating that, on average, renters insurance premiums are affordable, dispelling the myth that it is an expensive coverage. The data on average homeowners insurance premiums and the fluctuation in renters insurance premiums over the years are also presented for comparison.
In summary, the article emphasizes the importance of renters insurance, dispels common misconceptions, and provides valuable information about coverage, costs, and common claims. As an enthusiast in the insurance domain, I strongly advocate for renters to recognize the value and affordability of renters insurance to protect their belongings and maintain peace of mind in the face of unforeseen events.
