With the economy the way it is people are cutting back on lots of things like nights out, shopping trips, vacations, and homeowners insurance... wait, what? Yes. You heard right.
A recent news article from Florida's news 4 explains that many people who rent homes have not become subscribers on some form of renters insurance. When the rate of foreclosures rises, causing more people to move into rented homes and apartments, it makes sense that we would see a drop in the rate of homeowners policies. However, when that happens, the industry should also see a rise in the rate of renters insurance policies being taken out. The problem is, this hasn't occurred.
In order to save money, people being faced with foreclosures and the threat of bankruptcy, can choose to tighten their purse strings by not taking out renters insurance on their new residency.
This can get incredibly risky, especially with the storms that accompany the summer season.
The article quoted a homeowner from Florida, Faye Corbett who said, "I had a tree come down. It almost went into my pool and came about 10 feet from my bedroom window,It cost me and my landlord about $2,000 to get that removed and get everything done. It took down my privacy fence, fell across it. We had to have part of the roof put back on. It did quite a bit of damage."
Corbett confessed that right before this happened, she had ditched her renters insurance in order to save money. While renters may want to save that monthly payment, it's going to cost them a lot more to fix and restore damage incurred by a summer storm or flood.
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