Make the Most of Renters Insurance
October 30, 2007
Many renters believe that renter’s insurance is either too expensive or that it simply is not necessary. Most people fully understand the need for homeowner’s insurance, but that same feeling is not always carried over to those who are renting homes rather than buying.
Some interesting facts concerning renters insurance:
A poll conducted in 2006 discovered that over 95 percent of all home owners had home owner’s insurance. Much of this may have been due to legal requirements from lenders to carry adequate insurance during the life of the loan. Renters, on the other hand, were shown to have insurance at a rate of less than 45 percent.
The average premium for home owner’s insurance was set at about $850 for the year 2006. The average premium for renter insurance for the same year came in at about $425.
In both cases of homeowner insurance and renter insurance, premiums are expected to increase over time. This increase, however, is expected to be moderate rather than large.
An interesting side bar is that renters are victims of burglary about 50 percent higher than home owners. Some causes of this may be in the fact that rented dwellings are often less secure and have fewer security features. While it is not true in all cases, rented dwellings are often in poorer neighborhoods with higher crime rates overall.
Renter’s insurance premiums will vary a great deal depending on which state the renter lives in. Even so, the premiums paid on renter’s insurance is far less, usually, than the cost of replacement items should they be destroyed or stolen.