Their study, conducted via an online survey earlier this year, examined more than 1,000 people who were between the ages of 23 and 35. In addition to discovering that more millenials were renting, they also found that most did not have insurance for the properties they occupied. Experts said that about 75% of the people surveyed did not know they could obtain Renters Insurance for about the same cost as a pair of movie tickets.
They concluded that there was a clear misconception with this group of young people about how important it is to have Renters Insurance and the true cost of coverage. Leaving your belongings at risk, when approximately $20 per month can buy adequate coverage is an unwise move. Renters often live in properties with multiple units, and they may not always realize how high the risk of fires and other disasters are in these places. Although property owners are responsible for repairs to the structure in the event of most disasters, they are not responsible for tenants’ belongings. It is up to renters to make sure your possessions are protected.
In their research, experts also found that about 40% of people who did not have renters coverage did not think it was necessary. They said nearly 70% of all young adult renters replied that the cost to replace all of their belongings would exceed $5,000. Renters who had coverage said they bought policies because they wanted the peace of mind to know they were protected.
There were some other observations researchers noted about renters coverage…
- 40% said their biggest fear was fire damage
- 30% said their biggest fear was theft
- Less than five percent responded that their biggest fear was a zombie apocalypse 🙂
- Nearly 25% of the renters surveyed said they would rescue their laptops first (this included comparisons with cell phones, hidden cash and heirlooms)
- 40% of respondents said they did not know stolen property was covered in a renters insurance policy
- 30% of participants said they did not believe party mishaps would be covered, but they were surprised to find that many types of damages to personal property or the structure that are typical at parties were covered
- 70% of survey participants said they had rented for more than three years, but nearly 50% had rented for more than five years
- More than 55% of those respondents did not have coverage
Since 2008, one of the nation’s top insurers has paid more than $180 million in renters insurance claims. The average claim that year was about $4,000. Renters insurance is quick and easy to buy, and millenials everywhere should make sure they always have it. To learn more about this type of coverage and how affordable it is, discuss concerns with one of our dedicated Personal Insurance agents.