I’m responding to The Western Front’s Jan. 6 editorial board opinion that encouraged the City of Bellingham to force all renters to purchase renters insurance in case of fire or burglary. They didn’t quantify relevant risks and returns, so I will.
Of Western’s 14,979 students, 10,960 live off campus; presumably, almost all are renters. Last year’s fires damaged seven students’ three homes, but one student’s parents’ homeowners insurance protected her. So, of the six uninsured this affected just 0.055 percent of us.
The Bellingham Police Department reported that in 2011 our city had 627 residential burglaries, which is defined as unlawful entry, not necessarily theft. Of Bellingham’s 36,388 households, that’s a 1.72 percent chance we’ll be burglarized.
Combining both fire and burglary risks, 1.78 percent of students may need renters insurance. Divide annual $170 insurance premiums by this 1.78 percent risk for the value that average annual losses must exceed to justify purchasing insurance: $9,550.
Western Front articles on burglaries and fires state that most losses were stolen laptops and burnt clothing and/or books. Will fire or burglary deprive you of $9,550 of college-student belongings? If not, statistically you’re better off not purchasing insurance.
The risks still exist of course, but is it really vital that you and your roommates each pay $170 more per year? You’re free to choose for now, unless Bellingham accepts this newspaper’s recommendation. In any case, plenty of insurance salespeople will still take your money for generally overpriced products.
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