Is Renters Insurance A Scam In 2017?

Is renters insurance a scam in 2017?  Common concerns that we hear include…

• Where’s the value in paying over and over again for a policy that you’ll probably never use?
• Aren’t insurance companies in business to make a profit?
• I bet the property manager gets a kickback off this!
• You’re just trying to make a commission!

We’ve also heard a few other comments that we won’t bother to reprint here.

If your property management company is requiring you to purchase Arvada, CO Renters Insurance, you’re probably wondering whether it’s a scam and how you can get out of it.  You’ll find the answers you need below!

Is Renters Insurance A Scam In 2017?

Where’s the value in paying over and over again for a policy that you’ll probably never use?

We don’t know about you, but “probably” isn’t a good enough guarantee for us to risk it all.  There are people out there who can calculate the odds of any given event occurring.  They can tell you how long to play the game so you have the best chance of winning, and even when to quit while you’re ahead.

Those people are not gamblers.

Those folks are called “actuaries,” and it’s their job to make those calculations on behalf of the insurance company.  They’re not calculating blackjack odds, they’re calculating the odds of your neighbor lighting a candle and then going out for the evening.

If that happened, the resulting fire would take everything you own.  It would be on you to replace it.  Do you have tens of thousands of dollars in savings that you’re ready to risk on an event like that?  Most people don’t.  On the other hand, many people might never need their renters insurance policy.

If you do need the coverage, though, the fifteen dollars or so a month will have been worthwhile.  Consider this:  The average renters insurance policy covers $15,000 of personal property.  At about fifteen bucks a month, you’d need to go without a personal property loss for 1,000 months (or just over eighty-three years) before you’ve paid more than the policy will replace.  Is renters insurance a scam in 2017?  No, an eighty-three year winning bet sounds worthwhile to us, considering the average lifespan of Americans!

Aren’t insurance companies in business to make a profit?

Well…  Yes, most insurance companies are in business to make a profit.  Then again, so is the company you work for in most cases!  On the other hand, remember that insurance companies are required to maintain claims reserves.  These reserves are based on their total possible exposure in a worst case scenario – in other words, they are significant.

Insurance prices are regulated by the state, as well.  The prices are set so that profitability is possible, but not guaranteed.  Once those rates are approved, in most cases, the insurance company is stuck with them.  They can’t just change their prices arbitrarily like most other types of companies can.

The system is designed so that the rates are fair, the insurance companies can continue to operate, and you get the coverage you deserve at a price you can afford.  Is renters insurance a scam?  Not at all.

I bet the property manager gets a kickback off this!

Actually…  What your property manager gets out of you having renters insurance is knowing that if you cause a loss to the property, you’ll be able to pay for it.

That’s right, the property manager just wants to know that you’ll be able to cover things you’re responsible for.  In that regard, renters insurance is similar to auto insurance.  There’s a chance you could cause significant damages by driving a car, so you’re required to have auto insurance to protect the people you could harm.

Even if there’s a penalty fee in your lease for not having renters insurance, that’s not generally profit for your property manager.  Often, that penalty fee goes into a fund that pays for losses caused by…  Residents without renters insurance.  One way or another, your property management just wants to know you’re a responsible resident.

The leasing agents and people in the community office certainly aren’t getting money out of the policy you buy.  They’re just doing their job by making sure tenants meet the requirements to live in the community.  You do want to be assured that the people around you are the sort of people you’d want around you, right?

It’s their job to make sure that leases are complied with and requirements are met.  That doesn’t sound like a scam at all.  That sounds like hard working Americans doing what they’re paid to do.

You’re just trying to make a commission!

Actually, everyone at Effective Coverage is on salary.  That may be a rarity, but the system is designed so that you get the best information on a Arvada Renters Insurance policy that meets your individual needs.  If there’s coverage you should have, we’ll offer it and explain why it might be appropriate for your lifestyle.  The idea is that we’re offering you coverage that could have value to you – it makes no difference to the person offering the coverage whether you spend the extra few dollars or not.

Effective Coverage is committed to our core values, and as a result we focus on education and helping people get the coverage that meets their needs and their budget.  We’ve made it easy, as well.  You can get covered in just sixty seconds!  Just call (800)892-4308 or click to get covered - whether you need Arvada renters insurance quotes online or coverage anywhere else!

Effective Coverage offers the nation's only completely mobile platform to quote and purchase renters insurance right from your phone or tablet in just one minute. Get an online renters insurance quote today and protect your family.

What's Your Insurance Language?

• Do You Need Renters Insurance ASAP? Check out the fastest way to buy renters insurance online and get covered in just 60 seconds!
• Do You Feel Like Talking About It? Just call Effective Coverage and a renters insurance expert can help you get great coverage in minutes.
• Do You Need Some Time Alone With Your Thoughts? We understand, which is why we created the Colorado Guide To Renters Insurance. 
• Just Want To Watch A Movie Together? See our Video Colorado Renters Insurance Guide!