Thursday, June 23, 2016

Millennials Prefer to Rent but Pass on Renters Insurance

Renters Insurance, insurance, finance, money, personal finance

According to a survey published on insuranceQuotes, Millennials prefer to rent homes, and most of them don't like to get renters insurance. Even though that coverage is not expensive, and having non could cause a huge financial hardship.

Based on the April 2016 survey for done by Princeton Survey Research Associates International, 66% of 18 to 29 years old are renting their home, compared with just 37% of consumers overall. What is alarming is that less than 33% of Millennial renters have renters insurance.

When questioned about not having renters policy, 59% of renters in the 18 to 29 age group said that cost is not the primary reason. Instead, they believe it’s unnecessary because they live in a very secure property (61%), or they don’t own enough personal property to insure (43%). And 41% of them said they’re avoiding renters insurance because they don’t understand how the product works.

A lot of the consumers are foregoing the benefits of renters insurance because they underestimate the benefits and overestimate its cost. The average annual premium is $188 (or $15.67 per month); however, 25% of 18- to 29-year-old respondents believe they’d have to pay $1,000 or more. People need to be educated since it is an affordable financial safety net that every renter should have.

Other report highlights include:

    Renters who don’t have renters insurance because they don’t understand the product increased from 27% in 2015 to 33% this year.
    Renters who don’t have insurance because they don’t know where to get it also increased from 20% in 2015 to 26% this year.
    College graduates are more likely to have renters insurance compared to high school graduates or those with a lesser education – 64% to 24% respectively.
    35% of respondents mistakenly said a renters policy does not cover personal property damaged in a natural disaster or property stolen from you outside of your rental home (60%).

The full report is available here:

The survey was done by Princeton Survey Research Associates International (PSRAI) through telephone interviews with a nationally representative sample of 1,000 adults living in the continental United States.

Here is why Renters Insurance is important for me personally:

1. If my stuff is stolen like my iPhone, iPad or laptop, furniture or bicycles could cost thousands of dollars. Renters insurance covers more than just theft it also covers fire, water problems and vandalism.

2. If you burned your dinner and it resulted to smoke damage. Your landlord will bill you for that damage even if none of your property was damaged since his property has been.

3. Renters insurance is about $12 to $30 a month for $30,000 worth of coverage a small cost with big pay off.


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