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67% Live Without Renters Insurance

fr-4About 26 million American households live dangerously. That’s a rough estimate of the number of American households that rent homes or apartments without renters insurance. Surveys indicate around 39 million households rent homes or apartments and 67%  live without renters insurance.

Most renters don’t realize it, but they are putting themselves in danger of bankruptcy by not having renters coverage, which would cover thefts or losses on personal property in case of a fire or other catastrophe. Without insurance most will not be able to replace their possessions if they suddenly loose them.

No Renter’s Insurance=Bankruptcy

The average family only has savings for about two weeks wages, which is not enough to replace all of the personal property in the typical home. Few would have enough money to replace clothes, furniture, computers, televisions, kitchen utensils, dishes and other possessions if they get destroyed, stolen or badly damaged.

Without insurance a family could end up sleeping on the floor of a friend or family member. Worse yet, the family could have to resort to credit cards or high cost alternatives such as rent to own stores to replace the lost items.

The family could avoid that catastrophe by simply buying a policy online. A basic renters policy for an average apartment costs less than $20 a month. A policy for a home is less than $35 a month. In other words, families can protect their financial futures for less than the price of dinner at a mid-range restaurant.

Why People Don’t

So why are so many Americans living dangerously when low cost protection is available? The main reason is unfortunately ignorance. Many people don’t realize that renters insurance is low cost and easy to get.

Many renters also live under the delusion that they will be covered by the landlords insurance. Contrary to popular belief, the landlord is only liable for damage that he somehow causes. To collect from the landlord the renter will probably have to hire an attorney and sue. That process can take months or years and the attorney will cost money.

Yet the renter will need things like clothing and a place to live right after an emergency. An insurance company can send the renter a check or make an electronic payment to start replacing lost property right away. The renter won’t have to raid his or her savings account or use credit cards to replace personal property. Living without renters insurance is dangerous and those households are putting their financial futures at risk.

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