The majority of young adult renters (56 percent) do not have renters insurance, according to a new survey by Nationwide Insurance. Additionally, 75 percent of those without renters insurance don’t realize they can get monthly coverage for as little as the cost of a pair of movie tickets.
“It’s clear that there’s a misconception among millennials about the importance of renters insurance and how much it really costs,” said Matt Jauchius, Nationwide’s chief marketing officer. “For the $20 renters spend on items such as coffee and streaming video, they can get excellent coverage to help protect their belongings. Considering renters share many of the same risks as homeowners, it’s not only important; it’s a no-brainer.”
The survey, commissioned by Nationwide, was conducted online nationally by Harris Interactive between February and March among more than 1,000, 23-35 year old renters, also found that more than 40 percent of those without renters insurance don’t think it is needed at all. However, 68 percent of all young adult renters said it would cost most more than an estimated $5,000 to replace their belongings should an unfortunate event occur. Renters who currently have renters insurance (52 percent) said they purchase policies because they want to feel protected.
Nationwide’s online survey uncovered other interesting perceptions about renters insurance:
- The two biggest fears among renters are fire (41 percent) and theft (31 percent), while three percent fear a zombie apocalypse.
- Twenty-four percent of these renters said they would save their laptop computer before anything else, including heirlooms, mobile phones and hidden cash.
- Forty percent of renters surveyed don’t know that renters insurance may cover their stolen property.
- Approximately one in three renters (30 percent) don’t believe party mishaps are covered by renters insurance, when in actuality renters insurance may cover claims from accidents such as a broken door, an injured party guest, or a damaged laptop.
- Seventy percent of renters surveyed have rented for three years or more, and nearly half of these renters (46 percent) have rented for five years or longer, yet most (56 percent) do not have renters insurance.
Since 2008, Nationwide Insurance has paid more than $184 million in renters insurance claims, averaging nearly $4,000 per claim.
To raise awareness of the value and security that renters insurance provides, Nationwide launched a new advertisement called “Reveal” that further targets the millennial audience, the largest demographic today at 86 million. The new spot features award winning country artist Jana Kramer reprising her role from Nationwide’s 2013 Brand New Belongings advertisement, this time replacing fire damaged items in an apartment setting.
“As someone who has rented myself, I know that protecting my belongings is a big priority,” said country star Jana Kramer. “I loved being a part of this commercial as the concept was really fun to shoot and I think the message is a good reminder to renters.”
The television advertisement is the latest installment of the company’s integrated Join the Nation national marketing campaign.
The national online study was conducted by Harris Interactive on behalf of Nationwide Insurance between February 27 and March 7, 2014. The 1,028 respondents were screened to those who rent their primary residence and are between the ages of 23 and 35. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated.
Source: Nationwide Insurance