As more and more property owners are requiring renter’s insurance, people are realizing that it is mutually beneficial.
The days of being able to rent a property with only a light vetting process is over. Now you are subject to criminal background checks, pet interviews and more. One of these changes is the necessity of renter’s insurance. Even if you happen to find a place to rent that does not require you to have it, it is a good idea to get it anyway.
According to the National Multifamily Housing Council, an estimated 44 percent of property management companies make renters insurance a requirement at all of their properties while 40 percent make it necessary at some of their properties. These numbers are expected to rise.
The push towards renter’s insurance really began in earnest in 2004. That is when The Wall Street Journal reported that apartment management companies saw as much as a 50 percent increase in their property and liability insurance rates. That is one of the reasons why so many decided to make renters insurance a necessity.
The goal was to let off some economic pressure by having renters share some of the risk involved as well as the financial responsibility.
Here are some of the reasons why renter’s insurance is a win-win for everyone involved:
A beneficial cost
No one is particularly fond of having to pay an extra fee each month to live somewhere but renter’s insurance is a necessary evil.
Not only will you get liability coverage, renters insurance also offers contents coverage if you want it. This means that if your personal items are destroyed, stolen or damaged you can have them replaced. This is something that is rarely offered even through other landlord insurance.
You might not think you have enough stuff of value to insure but research has shown that the average renter of a 2-bedroom apartment has approximately $30,000 worth of items.
You don’t realize it, but it all adds up. Even your dishes cost money when you think about it. If there was a fire, how would you replace all of your everyday items?
Renter’s insurance is highly affordable
It should also be noted that renter’s insurance is highly affordable. For about $15 per month you can have all of your possessions insured which is not only good in an emergency, but it gives you peace of mind as well.
You might even be able to save some extra cash by combining your renter’s insurance with your car insurance. Be sure to bring this up with your insurance agent.
More and more people are coming around to seeing the value of renter’s insurance. The number of these policies went up from 29 percent to 40 percent in the four years between 2011 and 2015. Those numbers are expected to keep climbing.
Always remember, even if you are not required to get renters insurance, it is well worth the added expense each month.