Number of Renters is on the Rise–But Few of Them Have Insurance
Targeted News Service |
The number of renters has grown dramatically in some of the most populous--and disaster-prone--U.S. cities, yet few renters actually purchase insurance, according to the
Indeed, only 37 percent of renters have renters insurance whereas 95 percent of homeowners have a homeowners insurance policy, according to a 2014 I.I.I. poll conducted by
"Renters insurance provides a very important financial safety net when there is a disaster," points out
Homeownership has fallen for over the past decade, according to
"Many renters are under the misperception that their landlord's insurance policy will reimburse them if their personal property is damaged or destroyed, but that's just not the case," says Salvatore. "Fortunately, renters have a range of insurance options to choose from."
The following types of policies are available to renters:
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Renters insurance provides financial protection against damage to or loss of personal possessions due to hurricanes, fire, lightning, theft, explosion and other disasters listed in the policy. There is even coverage for water damage caused by burst pipes or a neighbor who forgets to shut off the water in the tub. Coverage is available on either an actual cash value basis (depreciated value) or for its replacement cost (no deduction for depreciation). Renters insurance does NOT cover flooding and earthquake, but separate policies can be purchased for these events.
Renters insurance also provides coverage for additional living expenses, in the event you are unable to live in your home due to a fire or other insured disaster. It also includes liability insurance if you, a family member (or even your pet) accidently injure someone and they sue you. For more information: What You Need to Know about
*
Flood insurance is available from the National Flood Insurance Program (NFIP) and a few private insurance companies. It provides coverage for personal possessions on an actual cash value basis, generally up to about
* Earthquake Coverage
Renters can purchase insurance for damage to their personal possessions due to earthquakes from private insurance companies or in
* Umbrella Liability
An umbrella liability policy can be a cost-effective option for increasing your level of liability protection. The policy kicks in when the limit on your renters insurance has been reached. It will also provide coverage for libel and slander. Umbrella policies generally cost about
* Floater or Endorsement for Expensive items
If you own expensive jewelry, collectibles, musical instruments or even high-end sports equipment, you may want to add a floater or endorsement to your renters policy. This would provide broader coverage for risks such as "mysterious disappearance." So even if you lose the item, you would be covered. For more information: Floaters and Endorsements: Special Coverage for Valuables.
RELATED LINKS
Article: Does My Home Insurance Policy Provide Coverage for Flooding? (http://www.iii.org/article/does-my-homeowners-insurance-cover-flooding)
Insurance Issues Update:
Facts and Statistics: Earthquakes (http://www.iii.org/fact-statistic/earthquakes-and-tsunamis);
The I.I.I. has a full library of educational videos on its You Tube Channel. Information about I.I.I. mobile apps can be found here. (http://www.iii.org/software/)
[Category: Insurance]
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