Poll reveals misconceptions about renter’s insurance

Every year, residents end up with millions of dollars in uninsured losses that could be prevented. According to a poll commissioned by PEMCO Insurance based in Seattle, there is widespread misunderstanding about what is covered under a renter’s insurance policy. Data also showed that only 45 percent of renters have a renter’s insurance policy.

The poll, which surveyed about 600 Washington residents, indicates slightly more than half of the state’s renters forgo renter’s insurance despite statistics that show rented households are burglarized at rates 79 percent higher than residents who own property.

“Our poll revealed many renters don’t have a complete picture of the coverage they have outside of a renter’s policy,” said Jon Osterberg, PEMCO spokesman. “One of the most troubling aspects is that many renters in Washington think they have coverage from other sources when, in fact, they don’t.”

In the poll, 6 percent of those who do not have renter’s insurance thought their landlord’s policy would cover their personal belongings. Thirty-three percent of respondents cited the reason they don’t have renter’s insurance is because it is too expensive, while 27 percent said they don’t have enough property to warrant a policy.

“A landlord protects only his interest in the property — that typically means structural damage to the property is covered, not the tenant’s personal belongings,” Osterberg said.

Renters with a policy might be surprised they have more coverage than they think. Only 28 percent of poll respondents with a renter’s policy understood that most personal property in their car is also covered under a renter’s policy. While an auto policy will only cover what is attached to the vehicle, items such as a laptop are protected under a renter’s policy.

According to the U.S. Department of Justice, theft from a motor vehicle occurs at almost twice the rate for renters than for those who own their home.

“Most people dramatically underestimate the value of their household belongings,” Osterberg said. “The average renter has more than $20,000 in possessions, and in the case of a fire or other significant insurable event that can destroy an apartment, that can be a big blow without insurance.”

Personal property protection under a renter’s policy covers furniture, appliances, clothing, and household goods from fire, theft or vandalism.

Results of the PEMCO Northwest Insurance Poll are posted at www.pemco.com.

PEMCO Insurance commissioned the independent, statewide survey that asked Washingtonians several questions about home maintenance and other issues. Informa Research Services Inc. of Seattle conducted the poll that surveyed 606 renters.