If you think your landlord has covered you, think again.
Whether you live in a rented property or have a child renting an apartment in college, tenants are a must. It protects you from losses caused by theft, natural disasters or lawsuits. Still, most tenants do not buy it.
Data from a survey by the Insurance Information Institute in 2014 revealed that only 37 percent of tenants have insurance, while 95 percent of homeowners have it. What prevents people from buying tenants? Here are 5 of the most common myths …
Myth No. 1 – My landlord insurance covers my things
No. No. And a big fat NO. A landlord's insurance does not cover the tenant's personal property or liability. It only protects the landlord from structural damage to the property or a lawsuit as the owner of the building. So DO NOT trust your landlord to protect your belongings. It is NOT their responsibility to do so, but yours.
Myth # 2- I do not need insurance because I do not think my things are so valuable
Think about if you are a burglar. Or a fire destroys your apartment. How much does it cost to replace everything that has been stolen? Imagine that you take your home and turn it upside down. 99% of what falls out is yours. Clothes, furniture, kitchen contents, electronics are just the tip of the iceberg. Can you replace these items out of your own pocket? Most can not. And even if you just follow the basics of clothing, food and personal hygiene items, it will be fast.
Compare that to the average cost of tenant insurance in Ohio, about $ 1
Myth No. 3- My apartment complex is densely populated. I'm unlikely to be robbed.
It is also unlikely that a meteor will fall to Earth, but it can happen. And that's what insurance is for – the "could" who can wipe you out.
Tenants often have a false sense of security and think they are less likely to be burglary, but the opposite is true. According to U.S. Pat. Bureau of Justice Statistics households that rented the home were broken into at a higher rate than households that owned the home. In 2011, the number of burglaries was 18.3 per 1,000 households
who owned the property and 32.7 per 1,000 households that were rented.
Myth # 4 – The rental insurance only covers theft
The tenant's insurance provides much more than just theft protection:
- Liability. If you are sued for damage to your apartment or if your pet bites someone, the landlord's insurance does not cover the costs. Tenant insurance provides liability protection that covers your legal costs and pays the costs if you become liable. There are limits, so call us for details.
- Protection against damage from other dangers in addition to theft. Tenants' insurance protects personal property against damage caused by risks such as fire, lightning, smoke, vandalism, electrical surges, windstorms, hail, water damage from tools or appliances and more. Most tenant policies have additional cost of living (ALE) to pay for temporary accommodation if you are unable to stay in your rental due to a disaster. The policy differs in terms of restrictions and how long it covers. How long could you stay with a family member or friend? Or do you want to? As Benjamin Franklin famously said, "Guests, like fish, begin to smell after three days."
Myth # 5- My College Student Is Completely Covered By My Insurance
If you have a child in college, keep in mind that many Ohio homeowners' insurance policies limit the amount of insurance for a child not living at home to a small percentage of the total coverage for personal belongings (often only 10%!). Some policies also provide this coverage only for college-owned homes and do not cover off-campus properties. Your student may only need their own tenant insurance to properly cover all of their belongings on their campus, as well as provide liability protection for bodily injury or property damage to others. When in doubt, ask your agent!
Want to discuss your Ohio rental insurance? We are happy to help. Call us at (937) 592-4871 or fill out the form below.