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10/5/2011 - Cost of renting rising

The cost of renting is increasing.

New data released by the Labor Department has found that the cost of renting a property has increased in many parts of the country.

According to the report, on a monthly basis, the rent prices tenants paid for primary residences rose 0.4 % when comparing August to July. Year-over-year, rental rates are up 2 % from August 2010.

Housing experts tell the New York Times that the reason it's costing people more to rent is that demand for these units has risen dramatically, as it's gotten more difficult for individuals to secure a mortgage due to stricter lending practices.

Chris Christopher, senior principal economist for HIS Global Insight, told the Times fewer people are investing in homes because people they fear real estate is losing its value.

"A lot of people are really changing their attitudes toward housing," said Christopher. "So there is more renting going on."

With more individuals choosing to rent their homes over buying them, insurers may begin to see a rise in more people buying renters insurance. As the Insurance Information Institute indicates, renters insurance covers policyholders' property losses should they be damaged due to theft, windstorms and water, among other things.

To learn more about renters insurance from Selective, click here or talk to your independent insurance agent today.

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