A new US-based study conducted by Liberty Mutual Insurance has revealed that while 43% of Millennials are renters and less than half have renters insurance.
A third of some 3023 US Millennials surveyed said it never occurred to them to get renters insurance and 31% said the process of applying for contents insurance is too complicated. This trend is likely to reflect in the UK where the same pattern can be seen of young people facing much lower rates of home ownership than their parents’ generation while traditional policies are in competition with cheap gadget insurance that only covers high-end devices.
‘The unexpected is inevitable and it’s important for all generations to understand the importance and value of having good insurance coverage that is customised to your individual needs,’ said Emily Fink, chief marketing officer, Global Retail Markets at Liberty Mutual Insurance. ‘Having a protection plan in place now can provide confidence and peace of mind, ensuring you’re covered should an unexpected accident occur.’
Millennials are the most likely generation to entertain at home or throw house parties with 57% of survey respondents having hosted such events. 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 compared to GenXers and Boomers with 16% and 5% respectively.
Gadget Insurance Rising
While fewer young people have broader home insurance, they have a significantly higher use of gadget insurance than other generations.
Of the one-third of Millennial renters who have personal technology insurance, half did not have renters insurance, suggesting that phones, laptops and other high-value gadgets are both more important to them and probably represent the most valuable assets in their households. That said, the study found Millennials own on average more than $2,000 in jewellery.
While the age group was more likely to focus on individual items than comprehensive contents insurance policies, it placed great value in pet insurance.
According to the study Millennials are the most likely generation to purchase or adopt a dog or cat in the next year and spend more on pet insurance than any other generation.
More than half of Millennials own a pet and almost a third of Millennial pet owners report having pet insurance, compared to just 8% of GenXers and Boomers. The American study even found that some Millennials would compromise their own medical treatments or appointments to cover their pet’s healthcare costs.