Tenants Count On Landlords to Cover Losses

Only 34% of  tenants have renter’s insurance, according to a new survey just released by InsuranceQuotes.com.

InsuranceQuotes.com also found that 60% of tenants incorrectly pegged the annual cost of renter’s insurance at $250 per year or more. Twenty-one percent thought renter’s insurance cost a whopping $1,000 per year or more. The correct answer — according to the National Association of Insurance Commissioners — is $185 per year.

“Renter’s insurance is a lot more affordable than most people think,” said Laura Adams, senior insurance analyst, InsuranceQuotes.com. “Most renters don’t realize that their landlord’s insurance usually only covers the structure and not the renter’s belongings. And even in a safe area, renters can fall victim to theft, fire, water damage or another calamity. Fifteen dollars a month is a small price to pay in order to protect your possessions and liability in a lawsuit.”

The InsuranceQuotes.com survey found that the most common reasons for lacking renter’s insurance are:

“My apartment or rental home has good security” – 57% of those who lack renter’s insurance;

“Renter’s insurance is too expensive” — 52%; and,

“My landlord has insurance” — 48%.

InsuranceQuotes.com also found that only 28% of those who have renter’s insurance received the recommended three or more policy quotes before purchasing.

Tenants can compare quotes for renter’s insurance and other types of insurance policies at www.InsuranceQuotes.com.

With AAOA, landlords have resources at their fingertips. Check out our new Landlord Forms Page.

American Apartment Owners Association offers discounts on products and services for landlords related to your rental housing investment, including rental forms, tenant debt collection, tenant background checks, insurance and financing. Find out more at www.joinaaoa.org.