A new study by apartments.com, and reported on MHN Daily news, states that 67% of renters don’t bother to purchase renters’ insurance, even though the rate of theft is 50% higher for renters than for owners.
Interestingly, what the renter may not understand is that the renter is also missing out on liability insurance. Historically, this was not a big deal, as usually, people with assets to protect usually owned a home and therefore had homeowners’ insurance and the accompanying liability coverage.
Today however, there are many people with assets, including the affluent, who choose to rent due to their views of the real estate market or due to their more mobile business lifestyle. In this case, having the liability coverage is vital. It could be a case of people forgetting this little hole in their liability coverage.
If you rent and don’t have renters’ insurance, or you are not sure about your coverage, contact a professional p&c insurance agent asap. You may have exposed liability. Furthermore, in my reviews with clients, I have often found that even my insured clients have woefully inadequate coverage – also a good reason to see an agent.
I have my insurance experts review my clients’ insurance policies not less than annually to make sure there are no visible gaps in asset protection – it just makes sense.