Throughout the United States, and maybe the area where you live now, a not so subtle shift is occurring. It’s a shift toward renting primary living accommodations, rather than buying a single-family or multi-family home, condo or co-op, townhouse or manufactured home. It’s a fact. America’s rental population is currently growing three times faster than its homeowner population. Lot’s of news sources cite lots of reasons; increased mortgage rates, higher-starter home prices, higher condo fees and property taxes, an expanded and an aging population, too. No matter the reasons, facts are facts.Today’s renters now account for 44 million U.S. housing units, approximately 34% of the U.S. population.
Should Renters Carry Property Insurance?
Just over half do; currently 55% have a renter’s insurance policy. Which leaves a whole lot of renters, self-insuring their possessions, foregoing any liability coverage, and more. Why bother, you may ask. My landlord insures the building, why should I carry property insurance, too? Darren Impson, President, Paul Davis Restoration of Tampa, Florida offers firsthand experience. “Our company specializes in damage mitigation and needed restoration work for insured homes, multi-family condos and apartments, and retirement communities. For example, when damage occurs to a low- mid- or high-rise Florida apartment building, we are often the first company the property manager calls in. We’re the ones who take immediate action to stop additional damage and restore affected units to like new beauty. But we hear some sad stories. Renters who don’t carry their own insurance are often in a jam. Many have no ability to pay to clean damaged clothing and furnishings, or restore charished keepsakes, even their dishware, bedding and more, need professional help to bring these belongings back to life.”
You Be The Judge
Impson explains, “Rental insurance policies are surprisingly affordable. Typically they fully cover water, fire, and smoke damaged belongings, pay for removal expenses of damaged possessions, replace bedding, housewares, even pay for food loss. Coverage for temporary housing needs while your rented property is uninhabitable are often paid in full, too.” Landlords, not renters, are responsible for property damage and the necessary repair expense. Their insurance pays for this. So renters insurance covers contents within the living unit. This ‘contents coverage’ is amazing and surprisingly affordable. It includes repair or replacement of your own contents, plus liability and medical expenses. For instance, if you don’t have renters insurance and someone is injured in your apartment, you could be sued and have to pay for medical bills out of your own pocket. Even if the accident was not your fault, you could still be sued and pay thousands of dollars.
How Inexpensive is Renters Insurance?
Renters insurance policies typically cost $10 to $15 per month no matter where you live. The cost throughout all 50 states runs from $100 per year in Alaska, the lowest average cost state, to a high of $228 per year in Arkansas. Renters insurance isn’t legally required, but a landlord can require tenants to have a renters policy. Many landlords want tenants to be insured to help avoid potential disputes if tenant belongings are damaged while on the property. According to the Insurance Information Institute If someone else gets hurt while in your apartment and incurs medical bills, your renters insurance coverage typically helps you pay the costs. This can save you from having to reach into your own savings to pay for the entirety of someone else’s medical care. “We see too many situations where renters mistakenly didn’t think they’d need a policy, but it’s well worth it,” says Impson. “Remember too that when you experience damage to contents of your home, Paul Davis Restoration technicians are experts at restoring smoke, odor and water damaged belongings. When things go wrong, we do what’s right.”
