How to Help Residents Calculate Renters Insurance Coverage

Property managers have probably heard over and over the reasons why residents or applicants don’t want renters insurance. “Renters insurance is too expensive,” “My stuff isn’t worth that much anyway,” and “The apartment is already insured, right?” These are some of the common misconceptions, according to the National Association of Insurance Commissioners (NAIC). While including renters insurance in leases is an effective way to cover everybody in the event of an apartment loss, the concept can at times be hard for residents to swallow. For some prospects, the mere mention of mandatory renters insurance could be enough to lose a potential lease. Calculating renters insurance To help sell this point, residents should understand how to calculate the amount of coverage they need as well as see the value of the policy, says Jay Stoltz, LeasingDesk Insurance Director of Market Development. The value of possessions alone may be an eye opener. The average renter has $20,000-$30,000 in personal property, he says. The average renter’s insurance policy costs $15-$30 per month, far less expensive than replacing personal possessions or being liable for an accident. “An important consideration is for the resident to also purchase personal contents so their possessions are covered as well as their (ALE) additional living expenses, which helps to cover meals and hotel expenses in the event they are ever displaced,” Stoltz says. When explaining the benefits of renter’s insurance, a number of insurance professionals suggest keeping these points in mind: 1. Residents can calculate the value of their possessions using online tools Most insurance providers have online calculators that help determine the actual cash value or replacement cost of personal possessions. Most people think only their TVs or electronics are their most valuable possessions, but items like furniture, bedding, jewelry, appli...