August 1, 2019

A recent study found that millennials, especially, are renting in larger numbers than ever before, but that they are not getting renter’s coverage even though it’s inexpensive and can provide protection for their belongings.

Researchers also found that most (75%) of the people surveyed did not know they could obtain renter’s insurance for about the same monthly cost as a pair of movie tickets, and had therefore not purchased coverage for their possessions.

They concluded that there was a clear misconception about how important it is to have renter’s 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% of people without renter’s coverage did not think it was necessary. 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.

Renters’ biggest fears:

• About 40% said their biggest fear was fire damage.
• About 30% said their biggest fear was theft.
• Believe it or not, almost 5% said that their biggest fear was a zombie apocalypse!
• Nearly 25% of the renters surveyed said they would rescue their laptops first ahead of mobile phones, hidden cash and heirlooms.
• About 40% of respondents said they did not know stolen property was covered in a renter’s insurance policy.
• About 30% said they did not believe party mishaps would be covered, and they were surprised to find that many types of damage to personal property or the structure that are typical at parties were actually covered.

Inexpensive peace of mind

A plan that costs around $300 a year generally covers up to $50,000 worth of property. But most people won’t need that much coverage as renters.

A policy that covers $15,000 to $20,000 worth of property should be enough for many people. Such policies can sometimes be had for less than $200 a year, or as little as $10 to $15 a month. Bundling with an auto policy can save even more.

The best way to determine how much coverage to choose is to talk to an agent who will collect information about belongings. An agent can suggest how much coverage to buy based on the value of current possessions. An agent will also be glad to explain what certain terms mean. These are some additional issues to consider:

• Does the insurance plan affect roommates?
• Does the insurance plan cover all existing hazards?
• Is any additional coverage needed?
• How much liability coverage does the plan include?

If something happens to the rental unit that makes it uninhabitable for a period of time, renter’s insurance covers the additional cost of living elsewhere. Some examples of such damages include fires and toxic substances.

Renter’s insurance is quick and easy to buy, and renters should make sure they always have it. To learn more about this type of coverage and how affordable it is, talk to an agent today.

This information is being provided for general informational purposes only. Meemic Insurance Company does not assume any liability in connection with providing this information.