The number of renters has grown dramatically in some of the most populous—and disaster-prone—U.S. cities, yet few renters actually purchase insurance, according to theInsurance Information Institute(I.I.I.)
Indeed, only 37 percent of renters have renters insurance whereas 95 percent of homeowners have a homeowners insurance policy, according to a 2014 I.I.I. poll conducted by ORC International.
“Renters insurance provides a very important financial safety net when there is a disaster,” points out Jeanne M. Salvatore, senior vice president and chief communications officer for the I.I.I. “And, renters insurance is relatively inexpensive—the average cost of a renter’s policy is only $187 per year, or less than four dollars per week.”
If you own expensive jewelry, collectibles, musical instruments or even high-end sports equipment, you may want to add a floater or endorsement to your renters policy. This would provide broader coverage for risks such as “mysterious disappearance.” So even if you lose the item, you would be covered.