Most Young Renters Remain Uninsured
Although data from the U. S. Census Bureau shows that citizens aged 24 to 34 are renting more than ever before (increasing by more than a million from 2006 to 2011), most millenials do not have renters’ insurance.
A survey by Nationwide Insurance revealed that that despite renting in unprecedented numbers, 56% of millenials do not have renters’ insurance, and 75% are unaware that they can get monthly coverage at a relatively low cost.
“It’s clear that there’s a misconception among millenials about the importance of renters’ insurance and how much it really costs,” says Matt Jauchius, Nationwide’s chief marketing officer. “For the $20 renters spend on items such as coffee and streaming video, they can get excellent coverage to help protect their belongings. Considering renters share many of the same risks as homeowners, it’s not only important, it’s a no-brainer.”
Survey respondents- more than 1,000 renters ages 23-35- said it would cost an estiamted $5,000 to replace their belongings in the event of a catastrophe, but 40% do not see renters insurance as a necessity. With millenials being the largest demographic in America at 86 million (7% larger than the baby boomer generation), a large population of renters have a signifcant amount to lose from being uninsured.
The 52% of renters who do have renters’ insurance said they purchased policies to feel more protected. According to the survey, renter’s biggest fears are fire and theft, at 41% and 31% respectively.
Although 24% of renters said they would save their laptop computers before anything else, 40% did not know that renter’s insurance may cover stolen property. One in three renters did not know renters’ insurance covers party mishaps, including an injured party guest or a damaged laptop.
Because of the many misconceptions about renters’ insurance, we have an opportunity to educate clients about its benefits. Please call Armstrong Fairway Insurance Agency at (760)245-2561 with any questions regarding renters’ insurance and how we can help protect your personal belongings.
Bender, Hannah. "Most Young Renters Remain Uninsured." National Underwriter Property and Casualty May 2014: 22+.