Millennials are the largest generation of current home renters, but may have alternate priorities than other generations when it comes to protecting their belongings. A new study conducted by Liberty Mutual Insurance reveals that 43 percent of Millennials are renters and less than half (42 percent) of those millennials have renters insurance.
The study also found that while Millennials are choosing specific protection for their personal technology and even their pets more than other generations, approximately a quarter of Millennials are looking for ways to cut back on their auto, home and renters insurance. Why the lack of protection in certain areas? For Millennials, a lack of knowledge is the driving factor for insurance gaps, which is leaving them exposed to potential loss or damage. A third (33 percent) of Millennials said it never occurred to them to get renters insurance, for example, and 31 percent admitted the process is too complicated.
"The unexpected is inevitable and it's important for all generations to understand the importance and value of having good insurance coverage that is customized to your individual needs," said Emily Fink, chief marketing officer, Global Retail Markets at Liberty Mutual Insurance. "Our products are designed to be accessible, affordable and tailored to you so you only pay for what you need. Having a protection plan in place now can provide confidence and peace of mind, ensuring you're covered should an unexpected accident occur."
According to Millennials, tech is an important personal property worth protecting—and this is significantly higher than other generations. Nearly one-third (29 percent) report having special insurance coverage that protects their technology. Of the Millennial renters who have personal technology insurance, half (51 percent) do not have renters insurance, indicating that smartphones and computers may be considered more important for some than other belongings. While Millennials indicate they're trying to save money, their personal property value is still considerable—the study found that Millennials own on average more than $2,000 in jewelry. However, only 22 percent of Millennials find it extremely important to have insurance to cover their valuables with just 20 percent opting for additional coverage for these items.
Pets are also important to Millennials—the study indicates Millennials are the most likely generation to purchase or adopt a dog or cat in the next year and, as pet parents, they make trade-offs for their pet's wellbeing more than any other generation. More than half (57 percent) of Millennials own a pet and almost a third (31 percent) of Millennial pet owners report having pet insurance, compared to GenXers and Boomers (15 percent and 8 percent, respectively). Millennials are also 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).
Millennials are potentially exposed to more risk on the home front as well—they are the most likely generation to entertain at home or throw house parties (57 percent). One-third of Millennials who entertain in their home 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 Millennial renters who entertain in their home, 55 percent do not have renters insurance, leaving them exposed to liability. It's important for all generations to know that renters insurance gives you an added layer of liability protection and can cover you if you accidentally damage someone else's property or if someone sues you for injury in your apartment.