The importance of renter’s insurance in southern Colorado

According to a recent survey in Colorado Springs, 96 percent of the city’s rental properties are occupied — but that means many tenants likely don’t have renter’s insurance.

The need for it became painfully clear on May 24, when dozens of senior citizens were displaced by a fire at the Regency Tower apartments.

“I think around a dozen tenants didn’t have insurance,” said Margaret Williams, one of the displaced residents. “Many of them lost everything.”

Those tenants had no insurance to cover damaged or destroyed belongings, or to pay for temporary housing while repairs are made.

Sept. 1 is the Regency’s projected reopening date, more than three months after the fire.

With so many people renting during the area’s current tight housing market, how many don’t have renter’s insurance and how can they be convinced to obtain it?

“I wouldn’t be surprised if half of them don’t have it,” said Laura Nelson, of the Apartment Association of Southern Colorado. “That’s partly because of people thinking the owner of the property they rent is responsible for damage from a disaster.​​​​​​​
“My guess is 25% but that might be a low guess,” said Debbie Vandel, a State Farm Insurance agent. “Some people want to save money and others think they’ll never need it. But a policy also protects you from liability if the fire is your fault.”

So how can more renters be convinced to sign up?

“More education would help,” said Mariah Hoffman, a former insurance industry employee. “People don’t realize how inexpensive renter’s insurance is — around $10 per month. It will cover all of your possessions, even those you don’t feel are worth anything.”

Vandel advises renters to make sure a policy includes replacement costs to fully reimburse victims for lost possessions.

“Your insurance agent should be checking with you regularly about your policies,” she said.