Despite the substantial damages from Hurricane Harvey and Irma last month, renters across the U.S. are hesitant to pay for renters insurance. In fact, it seems like natural disasters do very little to convince renters to get insured. The Insurance Information Institute found in their poll that only 41% of renters had renters insurance in 2016 (amid raging wildfires in California and Tennessee, flooding in Louisiana, and Storm Jonas on the east coast). As a lot of residents may believe your property’s insurance will cover damages or theft, it’s all the more vital that you try to convince your renters to take precautions before disaster strikes.
Renters insurance is an important precaution not only for your resident’s personal belongings, but for your property’s and community’s well-being. However, what if your residents don’t have it? According to the Insurance Information Institute, a 2015 poll conducted by ORC International found that “among renters, only 40% said they had renters insurance.” While this percentage is a far cry from the 29% of renters with renters insurance in 2011, the amount of uninsured residents (and most likely applicants) is outrageously low. In order to protect yourself and your residents, you should be requiring renters insurance.
There are a lot of common misconceptions surrounding renters insurance, but one of the biggest ones for property managers is the idea that requiring renters insurance will cut down the amount of applicants. Although the fear of reduced applicants is valid, letting residents go assumedly uninsured can hurt you in the long run. It just takes one natural disaster or heavy rainstorm to regret making renters insurance optional.