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Renters Often Miss Out On The Necessary Insurance Cover To Protect Against Disasters

Nov 21

An analysis of renter's insurance claims revealed that renters are often unable to take advantage of the insurance they need due to lack of coverage or experience.

The report, conducted by Renters Insurance who analyzed renter's insurance claims over a five-year period dating back 2010-2015, found that one in three renters who were forced out of their homes due to disaster, including hurricanes and floods, lacked renter's insurance at all. This left them with little choice but to file for government assistance after losing everything.

A further 75% percent failed to submit a renter's claim because they either didn't know how to file it or were unaware they even had renter's insurance in the first place.

According to the National Flood Insurance Program, renter's insurance is a 'must have'.

They can provide coverage for renter's possessions and protect against damage caused by disasters. This includes fires, water damage from burst pipes or leaks as well as loss from theft, vandalism and even falling objects.

In the event that the renter's insurance does not cover events such as hurricanes, renters can take out separate policies with private insurers at their own expense. In cases where both renter's insurance and a separate policy are purchased homeowners will be responsible for filing claims under renter's insurance to ensure they receive the full amount of protection available.

However many still fail to take advantage of renter's insurance because either a renter lacks knowledge about what the policy covers or lack of renter's insurance altogether.

The best way to ensure renters are protected is to inform them of the options available, for example by encouraging renter's to go online and research renter's policies in order to find out how much protection they need. Additionally, renter's should be educated on what renter's insurance covers; without knowledge about their policy renters may not understand when it applies or when they need separate cover.

"A renter may never expect water damage from a burst pipe but if disaster strikes, whether natural or man-made, lack of coverage could potentially cost someone everything," said Steve Niemitz of Renters Insurance in Florida. "It is important that renters make themselves aware of what renter's insurance entails and that they have a renter's policy in place before disaster strikes."

In order to prevent the majority of renter's from being left uninsured, companies such as Renters Insurance offer renter's insurance which is tailored for specific needs. This includes options such as diminished value protection for renters who need renter's following loss or damage, replacement cost coverage so renters are fully reimbursed for any lost items, equipment rental reimbursement if renter's insurance does not provide interim housing while repairs are made on their property.

"People should always be aware of what renter's insurance covers and what deductible amount they will need to pay," added Niemitz. "It is just another aspect of protecting yourself against potential disaster and renter's insurance should be a top priority."

Disaster Such as Kitchen Fires, Sewer Backups and Rain Flooding Can Leave a renter with no coverage and damaged personal possessions.

Getting coverage for your personal possessions may only be a few hundred dollars of insurance premiums each year, but could help with coverage of thousands of dollars or more if you have an unexpected loss.

A renter's insurance policy typically costs less than $500 per year, but can result in thousands of dollars worth of savings or compensation for losses. At the very least renter's insurance will provide peace of mind knowing you are covered if disaster does strike.

Landslides, sinkholes,  flooding disaster and earthquakes caused by severe weather could all be potentially financially devastating to renters who lack renter's insurance.

"Many people believe that renter's insurance only covers stolen items or lost luggage when they travel," said Niemitz. "However renter's insurance provides so much more than just theft protection; it also covers things such as water damage from burst pipes or leaks."

Renter's Insurance Helps to Protect Your Belongings from Loss, Damage, and Theft

Renter's insurance is often overlooked as an essential protection for people who live in rented properties such as apartments and condos. It covers both your personal possessions and the rental unit itself against incidents such as water damage from burst pipes or theft of items within the property.

The renter's insurance typically will cost less than $500 per year but could result in thousands of dollars worth of savings if disaster strikes.

Even though renter's insurance does not cover disasters such as earthquakes, landslides, or sinkholes it can still be useful for those who rent within areas which are affected by severe weather events such as heavy rainfall causing flooding to a rental property.

"Many renters only used renter's insurance to cover themselves when traveling, but renter's insurance provides so much more than just theft protection," said Niemitz. "It also covers items such as water damage from burst pipes or leaks."