More than half of Hispanic renters do not have insurance for their properties. However, surveys show that Hispanic consumers have a positive attitude toward insurance and trust the insurance industry.
What explains the difference?
One reason could be that Hispanic renters do not see insurance as an investment. Auto insurance is required in most states, but renters insurance is not always required. One respondent in this study stated that she would rather spend money on necessities, like food or gas, than on an optional coverage like renters.
However, renters insurance can cost as low as $12 per month. For most vehicles, that costs less than one tank of gas. Renters insurance is much cheaper than homeowners insurance because the policy does not cover the building itself.
Another reason could be that many people simply do not have enough information about renters insurance.
What exactly is covered by renters insurance, then?
Renters insurance will provide you with personal property and personal liability coverage. Say your rental unit is broken into and your possessions are stolen, renters insurance will reimburse you for your stolen property up to the amount specified in your policy. Common items covered include clothes, jewelry, TVs, furniture and computers. Also, if someone gets injured in your home, your renters insurance will cover it.
Your landlord probably has insurance for the property, but that coverage does not protect your belongings. You may not feel like you have much to protect, but all the items such as electronics, clothes and small appliances add up! Think about all those items when considering a renters policy.
Your renters insurance provides coverage in the event of damage by fire or lightning, windstorm or hail, explosion, vehicles, smoke, vandalism, theft, damage by glass, falling objects, weight of ice or snow, and water-related damage from home utilities, to name a few.
Do I need renters insurance?
There is an increasing need for renters insurance across the board. The growth rate of homeownership has slowed while rentership has increased. The majority of renters are young adults, the elderly, and minorities.
More and more individuals are turning to renters insurance to ensure their assets are adequately protected. The following chart shows the number of renters policies purchased through Infinity from 2013-2016.
Specifically, minorities represent three-quarters of growth in number of homes. Hispanics already represent more than 50 percent of renters in the US, and the projected growth rate among Hispanic households between 2015 and 2025 is 40 percent. This large population could be at significant risk of losing belongings with no way to replace them.
How could I benefit from renters insurance?
You can cover around $30,000 of your personal property for between $150 and $300 per year, which breaks down to between about $12 to $25 per month. If something were to happen, you would not have to pay your rent on top of paying to replace your belongings if you had renters insurance.
Renters insurance takes away your worry about extra expenses during a crisis so you can focus on what is important: the safety of your family.
Even better, you can usually get a discount on your renters insurance by getting it through the same company where you have your auto insurance.
Take the time to explore a renter’s policy. Call an Infinity agent at 1-800-INFINITY or get a quote online