There has been much talk about the importance of millennials and other young healthy people in determining the viability of the Affordable Care Act (i.e. Obamacare). Millennials include individuals born between 1980 and 2000. However, fears that premiums may rise because not enough millennials obtain coverage appear to be legitimate based on a recent study regarding the lack of property coverage by this demographic group. While we have routinely discussed property damage claims in the context of homeowner’s insurance, many younger people in the millennial demographic rent rather than own homes. A new study reflects the extent to which this age group has elected to opt out of the protection that renter’s insurance can provide for their property.
The new study commissioned by Nationwide found that millennials are renting homes at levels never seen before but with no protection for their property despite a reasonable amount of value. The report revealed that over half (56 percent) of the renters in this demographic group have absolutely no insurance to protect them from loss of their property. Further, 3 in 4 without coverage have no idea that the cost to protect their personal property can be as affordable as purchasing a pair of movie tickets each month.
It might be tempting to attribute this lack of coverage to the fact that millennials who are renting their homes do not have sufficient property to justify the expense of coverage. However, the responses provided in the survey do not support this conclusion. Almost 7 in 10 of those who participated in the survey indicated that they would need to spend in excess of $5,000 to replace their property. In other words, younger couples and families do not realize that they can protect thousands of dollars in belongings by skipping one trip to get coffee.
Forty percent of those polled in the survey indicated they were skeptical about any need to have property insurance despite the fact that the vast majority of those involved in the poll had thousands of dollars in personal property to protect. This view may have been linked in part to the narrow scope of risks that many people think renter’s insurance covers. Approximately forty percent of those in the survey reported that they were afraid of fire while 31 percent said theft was their major concern. However, forty percent of millennials who rent were unaware that renter’s insurance provides security against loss via theft.
Whether you are a homeowner or renter, the loss of all of your belongings because of a natural disaster, fire or theft can be a traumatic experience. When you have homeowner’s coverage or renter’s insurance, you have a safeguard that can prevent you from financial devastation if you experience a serious property loss.
You can reach Miami Renters Insurance Claims Lawyer J.P. Gonzalez-Sirgo by dialing his direct number at (786) 272-5841, calling the main office at (305) 461-1095, or Toll Free at 1 (866) 71-CLAIM or email Attorney Gonzalez-Sirgo directly at [email protected].