Here's a paradox: Millennials are most likely to rent theirhomes, but are least likely to purchase renters insurancecoverage.

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According to a new survey from Princeton Survey Research AssociatesInternational for InsuranceQuotes.com, 66% of 18- to29-year-olds rent their homes, compared to 37% of consumersoverall. However, nearly 70% of those millennials don't haveRenters' insurance.

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So what's keeping them from getting the coverage? Surprisingly,59% of consumers in this age group most likely would say cost isn'tthe reason they lack Renters' insurance. Interestingly, 61% ofmillennials say they live in a secure enough property to chooseskipping the coverage. Forty-three percent also claim they don'thave enough property to insure, and 41% say they don't understandhow the product actually works.

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Compare that to 33% of all renters who say they don't haverenters insurance because they don't understand the product.

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(Click chart to enlarge.)

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As many young millennials graduate high school and college andmove on to the next chapters of their lives — which more often thannot includes renting a home — here are some important facts toshare with millennial clients on the importance of Renters'insurance:

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Renters' insurance

Educate clients on the components of Renters'insurance

Renters' insurance has three main components:

  • Personal property coverage: Renters' insurancecovers the contents of a home including clothes, bicycles,furniture, dishes, TVs and other electronics. As a rough guide tothe dollar amount of coverage for a client to buy, add up the costto replace all the major items in a home: appliances they own,computers, other electronics and furniture, and then double thatamount.
  • Liability coverage: The liability componentmight be the biggest reason to get Renters' insurance because itcan protect clients from huge financial losses. Renters' insurancecan cover clients in a lawsuit by someone injured in their home andif their dog bites someone outside the home.
  • Additional living expenses coverage: Anotherfeature included in most renters insurance policies is calledadditional living expenses coverage. If a client can't stay intheir apartment after a fire, burst pipe or other disaster, thiscoverage will pay for temporary lodging.

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Woman on a laptop

Encourage millennial consumers to take theirtime

Let clients know they can take their time and do their researchwhen shopping for Renters' insurance. Explain all their options tothem and gather quotes from several insurers for them to choosefrom.

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Woman with dog

Let millennial clients know they can boost liabilitylimits

Most policies come with $100,000 of liability coverage, and mostrenters don't think to increase that. Let clients know that theycan get $500,000 in coverage for about an extra $20 per year —chump change in comparison to what they could lose.

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Flooded living room

Remind millennials about Flood insurance

While it does cover personal property damaged in a naturaldisaster, not all Renters' insurance policies cover floods causedby natural disasters.

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They may cover water damage from a plumbing problem, but manyrenters may need to purchase additional Flood insurance. Recommendthe coverage to millennial clients living in a flood-pronearea.

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Related: 5 reasons why renters needinsurance

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