We usually see this question posted online, followed by heated discussion. People want to know,
Is renters insurance a scam?
Is Renters Insurance A Scam?
Is renters insurance a scam to take advantage of vulnerable renters? You’ll be shocked at the conspiracy!
Is Renters Insurance A Scam?
Ever since shipping news was traded in a coffeehouse in London, there has been a multi-national conspiracy to scam renters out of money. The original Lloyd’s Act of 1871 laid the groundwork for this theft of epic proportions. As of early 2014, tens of quadrillions of dollars have been stolen from innocent tenants to line the pockets of the perpetrators of this scam. As a matter of fact, one of the primary drivers of the Scottish independence referendum is that Scotland wants to divest itself of any association with the renters insurance scam!
The above is what’s commonly known as “satire.” There is no conspiracy. There is no scam. There is no theft by deception or coercion. Why not, you ask? Is it because it can’t be proven? Have the original con artists simply died, rendering them unable to be found? Is there a massive coverup? Is the President in on it?

Is Renters Insurance A Scam?
No, it’s because renters insurance isn’t a scam. The entire premise of any kind of insurance is that you pay someone to take risk on your behalf. That means that if there’s a loss of the type specified in the policy, they will indemnify you for that loss. If you don’t have claims, do you get a refund on your renters insurance? Of course not, because you did in fact, receive the service you paid for, risk transference.
The fact that you didn’t get a payout as a result of buying the policy does not make it a scam. That just means that you were fortunate enough not to have a loss. The insurance company held up their end of the bargain, in return for your payment. Had there been a claim, they would have indemnified you.
Is renters insurance a scam? Absolutely not. Renters insurance is a crucial protection that everyone should have. To find out more about why renters insurance is so important, or to ask if renters insurance is a scam, call Effective Coverage at (800)892-4308 or click above for online renters insurance quotes to see how inexpensive it can be to protect your family!