Weighing the cost of tenants insurance
Published: March 27, 2018
Updated: July 24, 2018
Author: Luke Jones
CATEGORY: Home Insurance
Home renters are increasingly being pushed towards tenants insurance by the demands of landlords. This is a good thing as it ensures protection, but many tenants underestimate the value of their possessions and ultimately lose out.
Greg Robertson, president of R. Robertson Insurance Brokers says clothing is one area where customers miss value. He advises tenants to carefully account the true value of their clothes.
"I don’t know the true statistic, but I would guess that 90% of all tenants’ insurance policies are undervalued,” he said, suggesting most tenants have insurance that does not properly cover their contents.
Indeed, the average customer with a basic wardrobe could have between $5,000 and $10,000 tied up in clothing. Most "have no concept of the true value," Robertson points out. “They don’t understand what it’s going to cost to replace everything. I think that’s the biggest issue with tenant’s insurance. It has always been frustrating for me.”
despite this, tenants insurance is still something brokers are not in love with considering the lack of profitability. Many target the student market, but Robertson the costs simply don't add up.
“If you already insure their parents, you will [probably] help them out,” Robertson said of students. “But at the end of the day, is there any money there? Probably not.”