Renter’s insurance safeguards your personal property in a rented residence from unforeseen circumstances such as theft, fires, or plumbing problems, and offers protection for lost or damaged belongings. It can also help protect you from legal liability in case someone is injured on the premises occupied by you at the time. This insurance is similar to homeowners’ insurance but excludes coverage for the house and other buildings. In the event of a fire, lightning, windstorms, hail, frozen plumbing, theft, vandalism, or impact by a vehicle, renters’ insurance typically covers personal belongings against loss or damage. It additionally covers costs for short-term housing in case the residence is rendered uninhabitable due to damage and is undergoing repairs. It also offers protection for medical expenses of people hurt on your premises, and for belongings in your car that are lost or damaged. Over the past 5 years, there has been a steady 1.5% annual increase in the uptake for renters insurance, making it quite sought after.
Why insurance is becoming a must for renters
A study concluded that by age 30, just 42% of millennials owned homes, compared to 48% of Gen Xers and 51% of baby boomers, and while these numbers are gradually increasing, there’s still a large section of Americans that can not afford to buy property, these people will have to rent, making renters insurance a must. Renters themselves are opting for insurance like protection from theft, cover for damages caused by natural disasters, and so on. These policies are growing in popularity because they are designed to protect renters.
The reshaping of renters insurance, thanks to technology
Providing better customer service with AI: With advancements in AI chatbots and virtual assistants that enable instant claim processing and policy updates, taking out custom policies is now easier than ever. At Gonzalez Insurance, we tailor our policies for renters so that they can get the most out of their coverage.
Enabling faster decisions: Data makes decisions sharper and stronger, and insurers benefit from using digital platforms and algorithms to make sharper decisions based on data.
Adoption of online platforms to enable streamlined processes: There was a time when renters insurance seemed vague and ambiguous, and an additional cost that deterred people from taking it, however, renters are now finding it convenient to get quotes, manage their policies, and to file claims which cater to the preferences of younger renters.
Tailored plans for renters: While larger insurance companies will still offer umbrella policies that renters may or may not need, at Gonzalez Insurance, we tailored coverage options that can be bundled with other similar insurance like auto insurance to offer highly competitive rates and custom policies enabling both, transparency and savings.
Trends to expect with renters insurance
Renters insurance as a mandate: Renters insurance also benefits landlords as they do not have to bear the burden of covering high costs in case of emergencies or damages, this is why landlords are also beginning to include renters insurance as a requirement in lease agreements which safeguards both, landlord and tenant.
Data-driven personalization: It’s no secret that big data helps us make better decisions, and insurers are now able to harness volumes of data to tailor-make policies as per the needs of renters.
IoT integration: The integration of smart home devices like smoke detectors and security systems can reduce premiums and offer real-time monitoring for damage or theft. This is because potential damages can be nipped in the bud and prevented.
Blockchain for filing claims: Blockchain technology is making the claims process more transparent, and therefore reduces fraudulent claims.
Drones for damage assessment: Drones are now being used to assess damage, especially in high-risk areas that are tough to access within buildings. This also boosts human safety and ensures a proper assessment.
Further integration of AI, predictive analytics, and telematics: The process of choosing the right renters insurance is becoming highly customized and tailored to the needs of the policyholder to ensure they are getting what they need and nothing extra.
Advancements in tech are boosting every segment of insurance, and renters insurance is no less. At Gonzalez Insurance, we are always looking out for the best technology to improve our offerings and customer service. If you’re looking for custom renters insurance, get in touch.