Fewer New York State residents are taking advantage of cost-effective renters’ insurance, even as premiums in the state decline, the New York Insurance Association reveals.

According to the National Association of Insurance Commissioners, the average renters’ insurance policy premium in New York State decreased from $220 per year in 2006 to $210 per year in 2011. This is still higher than average nationwide premiums, which have remained virtually unchanged over the last decade, averaging approximately $185.

More and more families are renting nationwide for various economic reasons, which has caused apartment vacancy rates to decline at an annualized rate of 2.1% over the past five years, according to an IBISWorld study, boosting the need for renters’ insurance. In the nation’s largest cities, renters outnumber homeowners.

Furthermore, a 2012 report from the U.S. Census Bureau shows that the number of people living in city centers is increasing, with Chicago experiencing the largest numeric gains in its downtown area. In New York, 69% of households were renter-occupied, according to the 2010 Census. Renters occupy more than 61% of Los Angeles households, while in 55.1% and 54.6% rent in Chicago and Houston, respectively.

While renters can purchase renters’ insurance for less than $20 a month to ensure their belongings are covered against losses from fire, theft, smoke, lightning and other dangers, a 2014 Insurance Information Institute poll indicates that only 37% of renters cited having renters’ insurance. The percentage is down from 43% in 2006.

“Too many renters underestimate the value of the personal possessions they’ve accumulated over the years or assume their landlord’s insurance policy covers their possessions,” Ellen Melchionni, NYIA president said. “Renters insurance is an affordable way to ensure you are protected from a number of different risks.”

Purchasing renters’ insurance protects against personal possessions, but also safeguard renters’ against lawsuits and cover additional living expenses should an accident occur, and the renter is unable to live at home. Additional liability policies can cover other damages in the event of unexpected events, including earthquakes and floods.

“A standard renters policy provides coverage for big-ticket personal items—such as furniture, computers and television sets—in the event they are damaged or destroyed,” she said. “And, like homeowners insurance, renters insurance protects you from liability. The insurance covers your financial responsibility for injuries accidentally caused by you, a family member, or your pet and pays legal defense costs if you are taken to court.”

Special Reports /

Playing with fire? N.Y. residents still forgo renters' insurance

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