Wholly 95% of homeowners paid for homeowners insurance last year, while just 37% of renters invested in renters insurance. This, despite the fact that the number of Americans renting is rising faster than at any time since the 1980s. So why aren't more Americans, particularly millennials, discovering the benefits of renters insurance?
First off, too many articles of this type -- the "Why Don't More Millennials Do X???" thinkpiece -- fail to make one crucial acknowledgement. There's a good reason millennials forgo things like purchasing a car, investing, or renters insurance, and it's not a reckless disregard for their future. It's the economy, obviously. Essentials like smartphones, cell phone plans, internet access, laptops, and more must-haves drive up the cost of living, all while millions struggle to pay student loans.
Even so, few renters realize just how affordable renters insurance can be. According to the Independent Insurance Agents and Brokers of America, an average renters insurance plan can cost as little as $12 per month! Plus, if you can bundle renters insurance with other types of coverage, it could cost even less. Others simply assume their property management company has insurance that covers them, which isn't always the case.
So why are so many young people renting? Each year, 45 million people move, and Americans are increasingly likely to seek out new opportunities in new cities. That means many are reluctant to put down a 30-year mortgage, opting instead for a 12-month lease. Then there's the down payment required when buying a home. The security deposit on that luxury apartment or corporate housing company suddenly looks a lot more affordable.
But because so few people consider renters insurance, more Americans than ever are opening themselves up to risks when moving into such apartment communities. Renters insurance can cover your most valuable belongings, making sure you're protected in case of emergency. If you've ever had a bike stolen, you might be interested to know that most policies cover your belongings no matter where they're damaged or stolen.
Luckily, Becovic Management Group requires every resident to obtain renters insurance, which is a great benefit of living in one of our apartment communities.
The next time you look for an apartment for rent, talk to your property management company for information about the best coverage for you and your family.