Don most residents in rental communities already insure their belongings by purchasing their own policy?
Unfortunately, no. Residents often believe that the owners’ policies protect them from loss as long as they reside at the property. Residents sometimes believe their rental payments include the cost of insurance, but owners cannot insure property where they have no ownership interest, such as in the residents’ belongings. Owners have often been forced to claim on their own policies to recover damages caused by residents, with the result being increased premiums or policy cancellation. While residents understand principles of other insurance, such as auto coverage which includes liability coverage, many do not appreciate they have agreed in their leases to be financially responsible for damages. Some residents do not believe their belongings amount to enough investment to require coverage, and only realize after a loss the cost of replacing their belongings or paying negligent damages. Statistically, those residents who do purchase their own policies account for 5-10% of rental resident
