A new study finds that renters are underestimating the high cost of replacing their belongings while also being unaware of the true cost of renters insurance.
The Renters Consumer Insights Benchmark Study comes from Assurant, a global provider of lifestyle and housing solutions that support and protect major consumer purchases. Assurant conducted the study of 802 individuals between May 18 and May 29.
According to the study, 55% of the respondents without coverage reported that they were unaware of the cost, and 63% said they had underestimated the potential cost of replacing their belongings. For the respondents, the most common answer, 31%, to why an individual doesn’t have renters insurance was that they had never thought about it or it had never been offered to them.
For those respondents with renters insurance, 92% said they believe the cost is reasonable, and 98% said they were satisfied with the claim experience.
“Our study found that an overwhelming majority of respondents who have renters insurance believe the cost is reasonable, but those who do not are unaware of the cost or need,” says Ryan Lumsden, president of multifamily housing at Assurant. “We hope this study highlights the misconceptions around the affordability of protection, especially given the tough economic environment. By investing a little in renters insurance, renters could find themselves spared a lot of financial heartache due to theft or accident down the line.”
The study also found that respondents were motivated to purchase renters insurance because of fears of damage, 40%, or theft, 17%. And more than half of the respondents, 53%, had either experienced or knew someone who had experienced theft in their home or rental.
Additional findings found that over the past year, millennials—the largest group of insured renters in the study—increased their usage and investment in connected home security devices in the rental environment. The study found an 87% increase in mobile security alerts, a 62% increase alarm systems and light timers, and a 54% increase in video camera usage. Of those surveyed, 61% reported that they would pay higher rent for a connected doorbell, up from 54% in 2019.
