When Millennials Skip Renters Insurance
New research on young renters and their insurance habits reveals a troubling truth—they prioritize their pets and their pets’ health over their own. This large cohort of renters (some 43 percent of Millennials are renters) doesn’t invest in personal protection as much as it should—roughly 42 percent have renters insurance.
Unfortunately, the level of education on the benefits of insurance is still low, for instance, not many know that if they have items stolen from their car, it’s renters insurance that can cover the loss and not the auto insurance policy. They seem more preoccupied with insuring their personal technology (29 percent) and half of them don’t have renters insurance.
In other words, smartphones and computers may be considered more important than other belongings, even though their personal property value is significant. On average, Millennials own more than $2,000 in jewelry. Only 22 percent of Millennials consider important to have insurance to cover their valuables, and just 20 percent opt for additional coverage for these items.
Pets are also more important to Millennials—they are most likely to adopt a pet in the next year, and as pet parents, they make trade-offs for their pet’s well-being more than any other generation. Some 57 percent of Millennials own a pet and about 31 percent of them report having pet insurance, compared to GenXers and Boomers (15 percent and 8 percent respectively). This generation is even more likely to skip their own medical treatments or appointments to cover their pet’s healthcare costs (37 percent) compared to GenXers (28 percent) and Boomers (21 percent).
On the home front things aren’t any better, as Millennials are potentially exposed to more risks—they are the most likely generation to entertain at home of throw house parties (57 percent). One-third of them recall experiencing at least one negative event, such as damage to the home, theft or injury (37 percent) compared to GenXers and Boomers (16 percent and 5 percent respectively). Of the Millennials who entertain in their home, 55 percent do not have renters insurance, leaving them exposed to liability.