And some people think that crowdfunding after a loss is a viable alternative to Seattle renters insurance. To be fair, the vast majority of those people aren’t actively making that choice. It’s not as if they’ve sat down and done a cost/benefit analysis on whether or not they should pay for renters insurance or just depend on other people. That’s not what we’re suggesting. Doing so would be unthinkable from an ethical perspective, and “not a best practice” from a risk management standpoint.
We understand the value of crowdfunding, and we understand that bad things happen and that sometimes insurance gets forgotten in the process of moving, or in other busy situations. That shouldn’t be, perhaps, but it is. Knowing that there are likely people out there who will donate, let’s look at this objectively. Can crowdfunding be a viable way to fund a loss when there is no insurance?
Are You Sure? Really Sure?
Crowdfunding an uninsured loss is often an all-or-nothing proposition. Are you one hundred percent certain that you will meet your goal? If you don’t, you won’t get anything at all and you’ll have to go back to the friends and neighbors and people you know personally and ask them essentially to donate again. Even though they won’t be charged if the campaign fails, it’s still a second ask and many people are less likely to donate in that scenario.
The other alternative is setting your goals too low, which may increase the chances of success at the risk of not getting you what you need. If you do that, you may still be going to friends and neighbors for other things, or not be in the same condition you were in before the loss. That’s not a good answer, either, and even with a lower goal it’s still not a guarantee that it will be funded.
How Sociable Are You?
The success of a crowdfunding campaign after a loss without insurance is highly dependent on your ability to get it out there. How sociable are you online? Would your Facebook friends share it with their friends? Do you know influencers who can get you serious exposure?
Without that exposure, your crowdfunding campaign after a fire or other major loss is destined to failure. Remember that crowdfunding for a certain pizza business with some deeply held political views? The reason it was so wildly successful is that people shared it nationwide and many people pitched in small amounts. They had exposure, and they took advantage of it.
People Forget They Already Spent That Money
Crowdfunding campaigns often don’t charge until the campaign meets its goal. That means that some percentage of those cards will not approve for the amount they’ve pledged. You’ll end up with less money than you expect. It’s not that people do it on purpose, but they forget they’ve already spent that money, or their card was cancelled and reissued because it was compromised, or… You get the idea.
There are many pitfalls to using crowdfunding because you don’t have insurance. It’s much easier to just buy the policy for about fifteen dollars a month, and make sure you have the coverage you deserve. Remember that renters insurance claims are often settled quite quickly. Compare that to the maybe of a crowdfunding campaign and the length of time it takes to do and then to actually receive the money. To get covered for a price you can afford, just call (800)892-4308 or click to get covered - whether you need Seattle renters insurance quotes online or coverage anywhere else!
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