In a recent study, researchers discovered that millenials are renting in larger numbers than ever before. Their study examined more than 1,000 people who were between the ages of 23 and 35 in an online survey in early 2014. 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 percent 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 belongings at risk when about $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 their possessions are protected.
In their research, experts also found that about 40 percent of people who did not have renters coverage did not think it was necessary. They said nearly 70 percent 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. Two of respondents’ biggest fears included theft and fires. About 40 percent said their biggest fear was fire damage, and about 30 percent said their biggest fear was theft. Less than five percent responded that their biggest fear was a zombie apocalypse. Nearly 25 percent of the renters surveyed said they would rescue their laptops first. This included comparisons with mobile phones, hidden cash and heirlooms. About 40 percent of respondents said they did not know stolen property was covered in a renters insurance policy. About 30 percent 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.
About 70 percent of survey participants said they had rented for more than three years, but nearly 50 percent had rented for more than five years. More than 55 percent of those respondents did not have coverage. Since 2008, one of the nation’s top insurers paid more than $180 million in renters insurance claims. The average claim that year was about $4,000. In an effort to raise awareness of how valuable renters insurance is, one major company launched an advertisement to target millenials. At more than 85 million, this is the world’s largest demographic. The advertisement illustrated a fire and the damage sustained from it, and it outlined the importance of renters coverage. 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, call ACBI at 203-259-7580 or visit our website.