If you were about to lose $5000 or more and had a chance to avoid it, would you do what you could? Or would you just sit and watch it disappear without leaping into action to protect your money?
Of course you would leap into action.
However, according to a Nationwide Insurance survey it was revealed that despite there being increases in renting by millennials in unprecedented numbers, 56 percent of these young adult renters don’t have renters insurance.
This leaves their belongings and homes at risk. Also, out of those renters without renters insurance, roughly 75 percent of them do not even know they are able to get monthly coverage which costs no more than a couple of movie tickets.
Harris Interactive conducted this survey online nationally and it was commissioned by Nationwide. The survey took place between February and March last year, with over 1000 young adult renters between the ages of 23 to 35 participating.
The survey found that over 40 percent of the uninsured didn’t even think they needed renters insurance at all. But, almost 70 percent of these young adult renters claimed that in order for them to replace their belongings, they would have to fork out $5,000 or more should an unfortunate event happen.
There are an estimated 52 percent of renters who do have renters insurance and claim it makes them feel protected which is why they buy the policies.
Importance of Renters Insurance
Much like homeowners insurance is purchased to cover homeowner’s belongings, renters are able to and should buy renter’s insurance for the same reason. Your personal belongings like your furniture, clothing, and more are covered under your renter’s policy in the event of a burst pipe, fire, they are stolen, or other unfortunate event. Additionally, a renters policy will also pay for a new rental or a hotel stay in the event of a fire or other type of natural disaster. This type of coverage is known as ‘loss of use’.
In addition, like homeowners insurance, liability coverage is included in renters insurance. Therefore, if a person should happen to get injured in your home, things like legal proceedings or their healthcare costs are covered by your policy’s liability limits; usually around $100,000, but the amount will vary according to the policy.
Other interesting perceptions regarding renter’s insurance uncovered through this survey include:
Renters’ two largest fears were theft (31 percent) and fire (41 percent); a zombie apocalypse was feared by three percent.
Twenty-four percent said they would save their their laptop first.
Forty percent were unaware that renter’s insurance covered stolen property.
Thirty percent thought party mishaps were not covered, however, in reality renter’s insurance could cover things like an injured party guest, broken door or damaged laptop