Renters Don't Bother With Insurance

By Mark E. Ruquet

NU Online News Service, Aug 22, 2:15 p.m.EDT?Two-thirds of apartment residents and those living inrental homes carry no property or liability insurance, a surveyconducted for the Independent Insurance Agents & Brokers ofAmerica has found.

In a telephone poll of 1,000 people conducted by InternationalCommunications Research, based in Media, Pa., 64 percent told theindependent survey firm they have no insurance and 2.2 percent saidthey did not know if they have it.

"IIABA and its Trusted Choice agencies are surprised by thesurvey result because our society pays such careful attention tosecuring auto insurance for our vehicles, yet we have millions ofrenters neglecting the need to insure the rest of theirpossessions," said Robert A. Rusbuldt, IIABA chief executiveofficer.

IIABA said that more than 81 million Americans rent homes in theUnited States. A frequent reason many renters give for notpurchasing renters insurance is the expense, the associationcontinued. However, renters insurance policies cost as little as$10 per month. The average cost of renters insurance is $12 permonth for about $30,000 of property coverage and $100,000 ofliability coverage.

Rebecca Woan, principal with Chartwell Insurance Services inChicago, said agents can make customers aware of the coverageeither through mailings or as a part of their automobile insuranceprogram discussions.

One thing agents should keep in mind, she said, is to discussrenters insurance as part of a homeowners program for parents withchildren going away to college, especially at this time of theyear. Their homeowners coverage may extend to their children awayat school, but a typical deductible of between $2,500 to $5,000would probably exceed the student's losses. Purchasing aninexpensive plan would not only cover their son's or daughter'scontents, but would mean the parent would not have to file a claimunder their homeowners policy.

Ultimately, like all insurance, it is the client's decision tomake the purchase, but by informing policyholders, agents alsoavoid errors and omissions issues, she noted.