The chance of a renter experiencing a catastrophe and not having the protection needed from renters insurance has fallen to an all time low.
According to a new study completed by ORC International for Effective Coverage in March 2015, 44 percent of Americans now have renters insurance. Let’s pause here for a moment of triumph. That’s an increase of seven percentage points since the most recent Insurance Information Institute study.
While we have cause to celebrate, we still need to remember that 56 percent of American renters are still without coverage of any kind. These are our family members, our friends, and our neighbors who are risking financial turmoil in the case of a catastrophe. More needs to be done to encourage coverage before it is too late.
The team at Effective Coverage has the winning formula to make a difference. It is a mix of educating renters, improving the customer experience, and operating with the highest level of integrity. After the successful launch of the Renters Insurance Challenge in early 2015, the goal of having the majority of Americans with renters insurance is within reach.
Renters Insurance By Region – West
The West region showed the largest percentage of insured renters with 47 percent of polled renters saying they had renters insurance. This result is to be expected with the inclusion of California Renters Insurance who are keenly aware of the natural disasters they face, such as earthquakes and wildfires.
However, there are plenty of events not related to natural disasters in California. You might recall that twenty people were recently forced from their homes by a Modesto, CA apartment fire. That’s why California Renters Insurance is so important.
Renters Insurance By Region – Mid-West
The Mid-West is a close second with 46 percent of renters insured. Much of the Mid-West region is subject to regional risks such as tornadoes, and those regional risks are ever-present in the minds of residents. Renters may not be responsible for the buildings, but a tornado can level everything in its path, including all renters’ possessions.
Loss of use coverage is particularly important because chances are strong that there will not be any vacancies at a local hotel after a tornado. That means increased costs for additional living expenses, which could be a heavy burden without renters insurance.
Renters Insurance By Region – South
In the South, 43 percent of renters are insured, leaving 57 percent uncovered. That’s particularly interesting because the South also has some specific regional risks. Hurricanes are a very real possibility for many residents of the South. In certain parts of this region, it can be difficult to secure coverage, such as in Houston or Miami.
Having Texas Renters Insurance is crucial. We wrote a short time ago about some renters who experienced a Texas apartment fire and lost everything when twenty units were reduced to rubble. These renters did not have Grand Prairie Renters Insurance. It was a hard lesson for them to learn, and they’re still working to recover from that fire. 43 percent of Southern renters are protected, but we can strive for that number to be even higher.
Renters Insurance By Region – Northeast
The Northeast is a broad region, encompassing everything from New York City Renters Insurance to Vermont Renters Insurance, and everything in between those two extremes. The Northeast had a disappointing result showing that just 41 percent of renters are insured. 41 percent is still an improvement but a smaller one than hoped for. The Northeast includes places where weight of snow and ice can cause loss, but it also places like New York City where theft and fire pose increased risk due to population density. In New York City, hotels are expensive if you don’t have renters insurance to cover them after a loss.
Why Is Renters Insurance Important?
- Renters insurance is designed specifically to protect against the risks faced by renters and to protect renters. Losses to renters’ personal property is not covered by property owners. That is what renters insurance is for.
- Renters also need to protect their assets with liability coverage should they cause bodily injury or property damage to others.
- Finding somewhere to stay after a loss can be difficult and expensive. Imagine the horror of coming home and having to replace everything you have worked for in addition to having to pay that very day for a new place to live.
It Could Happen To Anyone!
A resident of a high-rise apartment thought he didn’t needChicago Renters Insurance because the building was secure, all necessary fire safety equipment was in place, and he felt safe there. Then one day, a pipe above his apartment broke, through no one’s fault. It was just one of those curve-balls that life throws.
The water drenched his closet and bedroom, damaging several thousand dollars worth of suits, ten thousand dollars of bedroom furniture, and other miscellaneous property. Renters insurance would have covered that loss, as well as made sure that he had a place to stay while the repairs to the pipe and his apartment were being completed. Instead, he ended up having to write a check for just over twenty thousand dollars, in total, to cover the loss and his additional living expenses.
These sorts of losses happen every single day. Your risks are not limited to fire and theft. Another man had a twenty-five pound ball of ice fall through the roof of his apartment, nearly killing his cats and causing significant damage to his furniture and other personal property. Renters insurance would likely have covered that loss, as well, possibly including the necessary cleanup given that the ball of ice fell from the sewage tank of a passing plane.
Events like these are why renters insurance is important and why anything less than 100% of American renters covered is an unacceptable social risk.
Challenges Going Forward
Education has been a major driver of the increase in insured renters. Effective Coverage shows dedication to the education of renters through the creation of state and city specific renters insurance guides to help educate and assist consumers in choosing the right policies to cover their particular needs. Outreach is also an important element, such as to property managers, schools, and renter-focused groups.
Another challenge is accessibility, and that’s one that Effective Coverage has taken firm steps to proactively address. The Effective Coverage site, its educational content, and the quoting process are all mobile-friendly and designed to be easy to use and accessible.
Four common misconceptions about Renters Insurance that we see nearly every day are:
- The landlord has insurance, so I don’t need insurance.
- Renters insurance is too expensive.
- I don’t have anything worth covering.
- I don’t know anything about renters insurance.
The team at Effective Coverage is thrilled that more renters than ever are maintaining renters insurance. This is a significant improvement from the previous 37 percent, and we look forward to seeing the improvement in the next round. The regional variation is notable but not an insurmountable obstacle. Effective Coverage continues working tirelessly to educate and assist renters in getting the protection they need. If you’re not covered, why not? Join the 44% and help us reach 50% of covered American renters by calling (800)892-4308 or click above for online renters insurance quotes..
This ORC International study presents the findings of a survey conducted among a sample of 2,024 adults comprising 1,008 men and 1,016 women 18 years of age and older. The online omnibus study is conducted twice a week among a demographically representative U.S. sample of 1,000 adults 18 years of age and older. This survey was live on March 2-4 & 9-11, 2015.