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Do Residents Understand the Value of Renter’s Insurance?

Digested from “As renting rises, many forgoing insurance”
The Chicago Tribune (9/8/15) Bigda, Carolyn

Renters are having difficulty affording rising rents, which makes renter’s insurance seem like more of a luxury than a necessity. Data from 2014 show that only 37 percent of renters had insurance, compared with 95 percent of homeowners.

One reason renters forgo insurance is its perceived cost. Another is lack of education about what insurance covers. Often, renters think they are already covered through their apartment community. Although there is usually a deductible to be met first, the actual cost of renter’s insurance is roughly $12 per month, which typically covers personal property as well as liability. And it may be even cheaper if renters bundle their policy with other products, such as car insurance.

Some apartment communities are reacting to this trend by requiring their residents to obtain renter’s insurance. But residents, especially younger ones, simply may not be aware of its benefits, so education is key.

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