Wow — that seems high, actually. There was a string of unrelated apartment fires in the Lansing, Michigan area a couple of years ago. Only about a quarter of the people affected had insurance.
Seriously, I don’t get why people don’t buy renter’s insurance. The product is
dirt cheap, and a lot of companies offer a multi-policy discount when it’s bundled with Auto. The discount on Auto almost pays for the renter’s policy in some cases.
I think one main coverage this article overlooks is the Liability coverage provided – probably more important that the property/contents insurance is – at least in my opinion. I would much rather be covered if someone in my apartment falls & sues me – since in this society it would be about $1,000,000 (Because you know there is a lawyer out there that says you can get that much for tripping over your own feet). Of course you should always cover your property to mitigate your damages in case of a loss. This is a super cheap policy to have – a lot of people just don’t think about them. My brother in law has an apt & no renters insurance. Pretty Dumb Huh! I done eveything but hit him over the head telling him to buy coverage. He says his stuff is junk anyway – no big deal.
I always offer a renter’s insurance quote to someone who applies for auto insurance and does not own a home. Very few people actually purchase it, unless it is tied to a multi-policy discount, and even then, MAYBE the success rate is 40%. When people are in the “non-standard auto” category its more like 15% of people purchase renter’s insurance.
I can’t even get my own kids to purchase renters insurance. I just decided one year that I would buy them all renter insurance policies for Christmas. Now part of my Christamas budget for them each year is to pay the annual insurance payment. They have the coverage and now if they have a fire or windstorm loss, now they don’t have to move back home with us!
Mike – With some of these renter if you tell them that the coverage is $150-200 they don’t buy it. But if you tell them that it only costs $15-20 per month you have a better shot on getting them to add the coverage. Most of them are already paying their auto insurance on a monthly basis anyways.
Mike – There are carriers that do have 12 monthly payment plans, or at least here in MN they are.
I am sure as an experienced agent, you spin your proposal/sales pitch so it matches the audience. Telling renters the monthly cost rather than annual is just a way to present the terms so you have a better chance of closing the deal.
Wow — that seems high, actually. There was a string of unrelated apartment fires in the Lansing, Michigan area a couple of years ago. Only about a quarter of the people affected had insurance.
Seriously, I don’t get why people don’t buy renter’s insurance. The product is
dirt cheap, and a lot of companies offer a multi-policy discount when it’s bundled with Auto. The discount on Auto almost pays for the renter’s policy in some cases.
Many years ago, I was sued. Left water running in the kitchen sink, overflowed, and ran downstairs through lightfixtures.
I know of one claim where the tenant was sued by the carrier because they had too many items plugged into an extension cord (caused a fire).
I strongly advise any tenant carry the coverage. You may never use it, but if you need it and don’t have it, you’ll be very sorry.
I think one main coverage this article overlooks is the Liability coverage provided – probably more important that the property/contents insurance is – at least in my opinion. I would much rather be covered if someone in my apartment falls & sues me – since in this society it would be about $1,000,000 (Because you know there is a lawyer out there that says you can get that much for tripping over your own feet). Of course you should always cover your property to mitigate your damages in case of a loss. This is a super cheap policy to have – a lot of people just don’t think about them. My brother in law has an apt & no renters insurance. Pretty Dumb Huh! I done eveything but hit him over the head telling him to buy coverage. He says his stuff is junk anyway – no big deal.
I always offer a renter’s insurance quote to someone who applies for auto insurance and does not own a home. Very few people actually purchase it, unless it is tied to a multi-policy discount, and even then, MAYBE the success rate is 40%. When people are in the “non-standard auto” category its more like 15% of people purchase renter’s insurance.
One of our AGENTS apt. building burned down this summer…she didn’t have renters insurance.
Explain that one….
I can’t even get my own kids to purchase renters insurance. I just decided one year that I would buy them all renter insurance policies for Christmas. Now part of my Christamas budget for them each year is to pay the annual insurance payment. They have the coverage and now if they have a fire or windstorm loss, now they don’t have to move back home with us!
Why do they insist on giving the monthly cost? Its not a monthly policy. Its a year policy, so give the rate for one year!
Mike – With some of these renter if you tell them that the coverage is $150-200 they don’t buy it. But if you tell them that it only costs $15-20 per month you have a better shot on getting them to add the coverage. Most of them are already paying their auto insurance on a monthly basis anyways.
Right – that shows how stupid they are. But this article is geared toward agents. Who we hope are not stupid.
Most people don’t even realize that a lot of times there aren’t even 12 payments – So the monthly payment is not indicative of the whole anyway.
Mike – There are carriers that do have 12 monthly payment plans, or at least here in MN they are.
I am sure as an experienced agent, you spin your proposal/sales pitch so it matches the audience. Telling renters the monthly cost rather than annual is just a way to present the terms so you have a better chance of closing the deal.
But like I said – This article is not trying to spin to renters – Its an article to agents.