Perilous state of economy makes NYC renters’ insurance more, not less, necessary
The Empire Building (right), an apartment building in Manhattan.
Renters’ insurance has become a half-billion dollar industry in the United States, and it’s expected to keep growing as more Americans become renters and more landlords require their tenants to carry insurance.
About 66 percent of apartment rental companies required renters to hold insurance in 2010, up from just 24 percent in 2008, according to the National Multi Housing Council.
For landlords, it’s about making sure their renters stay financially solvent — and protect themselves, too. And that goes double for landlords and tenants in apartment-rich New York City.
It’s been a tough few years for the economy, and an awful lot of people who would normally be homeowners are now renters — either because they can no longer afford a home, can’t qualify for a loan or are waiting for the housing market to bottom out.
Finances have become much more precarious nationwide. That’s why renters’ insurance is so important. Think about it: If, God forbid, somebody breaks in and steals your jewelry or TV or work clothes — it’s going to cost a lot of money to replace what you’ve lost. For a renter without insurance, that’s just one more hole to dig out of. And while that renter is digging, they are more likely to fall behind on the rent, putting a pinch on their landlord.
For $10 to $20 a month, renters and landlords can rest assured that even in the worst-case scenario, an insurance company will be there to cut a check.
The fact that more families and middle-aged professionals are now renting also creates an opportunity for insurers — and should help foster more competition for clients. After all, these are the people who, in a better economy, would already have a homeowner’s policy.
“Demand is expected to continue rising as more firms in the apartment rental industry require tenants to hold renters insurance,” says IBISWorld Analyst Kevin Culbert.
There’s another benefit — renter’s insurance should also cover liability. That means that if a guest slips and falls or is otherwise injured through no negligence of the tenant or landlord, then the renter’s insurance will cover damages, and the guest won’t have to try to force payment from the renter or the landlord.
New York City renters can turn to Gotham Brokerage Co., a family-owned business that’s been open more than 50 years, for help finding the best insurance plan. As a brokerage, we use a variety of insurance underwriters to provide policyholders with the most cost-effective and comprehensive coverage possible. And as a proud NYC firm, we know the city inside and out and understand the hazards that only NYC apartment living can pose.
If you’re uncertain about your coverage, give us a call or drop us an email. We’d be happy to provide you with a quote.
