More people residing in apartments, research shows

11/3/2010

More people are residing in apartment buildings and condos these days, rather than purchasing a home. A large insurance company conducted an analysis of census data and found a 10 percent increase in renters between 2004 and 2009.

Many people are aware of the value of having homeowners insurance. However, some may be surprised to learn that renters insurance is even an option. Given the increasing number of renters, there could be a large segment of the population unaware of this insurance option.

Sean Meehan, a representative from the insurance company, says insurance is needed even for a person who doesn't own the structure they live in.

"Even though a renter does not own the building, they still have personal belongings. The question is if something happened, can they afford to replace everything they own?" added Meehan. "Renters insurance makes sense because it helps safeguard a renter's finances against liability claims, replacement of personal belongings and other situations like credit card and check forgery."

Renters insurance is generally inexpensive and likely to be more affordable than most apartment dwellers realize. It is likely the coverage is less expensive than it would be to replace items lost or destroyed.

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