Renting may be on the rise these days, but buying renters insurance is not. Just 31 percent of today’s renters have coverage compared with 96 percent of homeowners. And that’s a scary thing being that renters experience 50 percent more burglaries than homeowners.
One reason many renters neglect to get insurance is because they falsely assume their landlord’s policy covers their belongings for theft or disaster. In reality, it typically only covers the landlord’s property.
Research shows that the last decade marked the most growth in the rental sector in the last 60 years. It’s not just 20-somethings looking for four walls and a roof who neglect to buy coverage. That’s because today’s renters are diverse in age, income and lifestyle—and they’re renting everything from apartments to townhouses to single-family homes.
Unfortunately, many renters like Kevin Miazga, a 26-year-old construction manager, learned the hard way how important renters insurance really is. Back in 2009, Kevin lost $3,000 worth of electronics when burglars broke into his Willoughby, Ohio, apartment.
“My door was smashed in, and my apartment was flipped upside-down—after that, I got renters insurance right away,” says Miazga, who benefited from a multi-policy discount when he bundled his renters insurance with his ERIE auto policy. “I never thought I would ever get robbed, and look what happened.”
A good renters insurance policy will have several key coverages. It should cover your personal property wherever it is, additional living expenses you incur if you have to relocate after a loss makes your rental uninhabitable and medical payments coverage. A good renters insurance policy should also include personal liability coverage for accidents you’re held liable for both in and away from your rental.