Most young adult renters don't have renters insurance and a large portion don't think the coverage is necessary, according to a survey for Nationwide Insurance.
Of the 1,000 25- to 35-year-old renters polled, 56 percent said they do not have renters insurance, and 75 percent of those respondents overestimated the cost.
"For the $20 renters spend on items such as coffee and streaming video, they can get excellent coverage to help protect their belongings," said Matt Jauchius, Nationwide's chief marketing officer, in a press statement. "Considering renters share many of the same risks as homeowners, it's not only important; it's a no-brainer."
Renters insurance covers a policyholder's belongings and provides liability insurance. It also covers additional living expenses if a catastrophe makes an apartment or rental home uninhabitable. Still, 40 percent of young adult renters without coverage said they don't need insurance, even though 68 percent said it would cost more than $5,000 to replace their belongings.
Other findings in the survey include:
- Asked which catastrophes they fear most, 41 percent of renters said fire, and 31 percent said theft. Three percent selected "zombie apocalypse."
- Twenty-four percent said they would save their laptop computer before anything else, including heirlooms, mobile phones, and cash.
- Forty percent of renters surveyed don't know that renters insurance may cover their stolen property.
- Thirty percent said they don't think renters insurance covers party mishaps when actually renters insurance may cover claims from accidents such as a broken door, an injured party guest, or a damaged laptop.
Harris Interactive conducted the national online survey for Nationwide in February and March. Seventy percent of renters surveyed have rented for three years or more, and almost half of them have rented for five years or longer.
Since 2008, Nationwide Insurance has paid more than $184 million in renters insurance claims, averaging about $4,000 per claim.