The number of renters are on the rise, but surveys have found that an alarming percentage don’t have renters insurance.
In 2016 a study by ORC International found that even though 95 percent of homeowners have homeowners insurance, only 41 percent of renters had renters insurance.1 While this number has increased from previous years, it is a long way off to making sure insureds are protected in case of catastrophe.
Why then, do so few renters get insurance? Orchid has collected some of the common statements made about renters insurance to see if they hold up to the truth.
One: “Renters insurance is expensive.”
False. Renters Insurance is one the most affordable policies on the market. For just a few dollars per week, you can have both property and liability coverage.
Two: “I don’t need renters insurance because I’m covered under my landlord.”
False. While there are some communities that partner with local insurance agencies to provide coverage options to tenants, most do not. A landlord’s DP3 insurance policy will only cover the structure of the building, not the contents in it. Renters will want to get an HO4 policy to cover their belongings and liability.
Three: “Renters insurance is for more than just your belongings”
True! A HO4 policy can cover your belongings from a number of perils, such as theft, fire, lightning, windstorm, hail, and non-weather related water damage. Depending on the policy, it may also provide coverage for items you keep inside your vehicle.
Not only will it cover loss or destruction of personal belongings, but can also provide liability coverage to help pay for covered damage of bodily injury to others. Sometimes accidents occur on your residence and liability coverage is an important necessity.
It’s important to note that Renters Insurance does not cover the structure of the building you are renting.
Four: “I don’t own fancy items or enough to worry about renters insurance”
False. Most people own more belongings than they think. A good rule of thumb is to walk through each room of your house and evaluate your possessions. Don’t just focus on the big ticket items. Be sure to include furniture, electronics, clothes, kitchen accessories, and décor.
Pay close attention to your policy, as some collection items or specific valuables may not be covered. In those cases a supplemental policy (often referred to as a “rider”) may be necessary.
Orchid Insurance is a premier insurance wholesaler, working with exclusively A.M. Best A- or Better Rated carriers. Licensed in 44 states and the Caribbean, we offer HO4, as well as HO3, HO5 and HO6 policies. To see all of our products, visit our Products Page.