The renter's segment is made up of a wide variety of people: from freshly independent students to retired couples downsizing into the simplicity of rented condos. The current difficulties in acquiring home ownership has led to a boom in the rental market. But, even as home rental surges, insurance coverage in this market is lagging behind.
Renting is something almost everyone does at one point or another. After all, many young people starting out on their own don't exactly have the credit score or resources to buy a house after they graduate. Of course, in times of financial crises, renting sometimes is a better option than buying, at least until markets stabilize.
Most people who rent have probably never thought of getting insurance. Indeed, according to statistics, only about a third of all renters have insurance. After all, if you're on a budget or saving for a home, then you want to be able to cut down on unecessary expenses. As an insurance agent, how can you convince renters that they need this product?
Renters insurance is probably something not many people think about. People who rent, after all, don't have to worry about damage to the homes they are staying in, as landlords take care of everything from broken fridges or major renovations. According to recent statistics, only 40% of renters have insurance, which is surprising considering other, more startling statistics, like housefires occuring in the US every 90 seconds and break-ins every 15 seconds.
More people should really have this type of insurance, and most agents know what an underserved market this can be. Before you do start marketing this product, make sure you consider these top 5 things that matter for renters insurance.