Most Renters Opt Out of Insurance Coverage
Even though renters insurance is relatively affordable, 65 percent of renters don’t purchase coverage, according to the Insurance Information Institute. The average renters insurance plan costs about $16 a month, or less than $200 per year, according to the National Association of Insurance Commissioners.
“It can be extremely expensive to have to re-buy the entire contents of your home, so a renter’s insurance policy provides very important financial protection when there is a hurricane or other covered disaster,” Jeanne M. Salvatore, I.I.I.’s consumer spokeswoman and senior vice president, told Realty Times.
Renters insurance typically covers “belongings against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm and water damage — including if the upstairs neighbor’s clogged tub overflows and damages items in an apartment below,” according to I.I.I. The coverage also often covers temporary housing if a rental home needs to be repaired or rebuilt.