Everyone can benefit when landlords ask or require their tenants to secure proper renter’s coverage. As an agent, you have a very important role to educate your clients of the benefits of securing this protection. Doing so can help you build long-term trust while providing the security that BOTH landlords and renters need! Many renters don’t understand why they need homeowners (renter’s) insurance. Some don’t even know if they have it or not. In fact, there are many reasons why renters don’t purchase renters coverage. Let’s review the myths driving the choice not to secure renters coverage, so you can help dispel some of these myths when reviewing coverage with your clients:
Myth #1: Coverage is Expensive
Renters or contents insurance is quite inexpensive. A typical Renters Policy is only about $100 per year. Many companies also offer a multi-policy discount if you bundle your Car Insurance and your Renters Insurance with the same company. This sometimes results in an annual savings on your Car Insurance of more than $100.
Myth #2: Exposure is Already Covered
Many renters believe their personal property is covered by the landlord, when actually the apartment or building owner’s coverage is only for the building itself and the common areas for the apartment owner’s liability.
Myth #3: Coverage is Unnecessary
Many uninsured tenants are younger adults who may not realize the high value of their clothing, furniture, computers, smart phones, valuable jewelry, and music collections.
Myth #4: Coverage is Narrow in Scope
The renter’s policy covers loss in the event of a destructive fire or another major type of loss. If a covered loss makes the apartment unit uninhabitable, the insurer would pay for the necessary hotel costs until the insured moves into another apartment.
If you are a Landlord, talk to your tenant about the importance of having a Renters Policy.
If you are a Renter and don't already have a Renters Policy, give us a call today.
Content for this article taken from original article "Reminder to Landlords and Tenants" from Lititz Mutual Insurance Company.