Statistics of Renters – Why You NEED Renters’ Insurance

Statistics of Renters – Why You NEED Renters’ Insurance

As we’ve covered before,  renter’s insurance is absolutely essential for renters, whether it’s for damage from fire, theft of possessions, to even esoteric coverage like protecting yourself from libel and slander.

However, as advisors in the insurance industry, RiskBlock  we understand that knowing is half the battle. Instead of suggesting the worst-case scenarios and reasons why most families can’t afford to NOT to be insured, it’s best to look at statistics that show just how important renter’s insurance can be.

Renter’s Stats

• USAA insurance says the average renter has more than $20,000 in possessions, while Allstate puts the total at around $30,000.

As a renter, it helps to take an inventory of your possessions and itemize how much it would take to replace every item. While some items certainly may have sentimental value, it is plain to see just how much renters have at stake. Remember, landlords are only responsible for the structural damage to their property; the rest of the responsibility falls on the renter.

• *37% of households (43,267,432 homes) are renter-occupied in the United States, which accounts for 35% of the United States population (110,175,847 residents).
• According to the Insurance Information Institute, http://www.iii.org/fact-statistic/renters-insurance] while 95% of homeowners have homeowner’s insurance, only 40% of renters have renters insurance.

These two statistics combined are enough to make most insurance advisors alarmed. Nearly 60% of renters (~44 million people) are risking their livelihood and worldly possessions, gambling with their future. The price of renter’s insurance is relatively miniscule—it’s often quoted as costing less than a delivered pizza per month—but the peace of mind is often priceless. The real question uninsured renters should ask themselves is if they could afford to start over if everything was gone tomorrow.

• **Of all 50 U.S. states, only 4 states have less than 40% of their renter populations that spend one-third or more of their income on rent and utilities.

This statistic is especially troubling. How quickly would you be able to recoup all of your necessary expenses while living in temporary housing (ie. hotel, relatives) and get back on your feet? How much of your income would be spent on finding ANOTHER place to live?

• *51% of apartment renters (55,916,372 renters) are under age 30, with an additional 22% of the demographic living in rented houses.Millennials typically fit this demographic. While most young people navigate their way through our ever-changing modern world and transition towards their given careers, not everyone is aware of just how important renters’ insurance is.

*[Source: NMHC tabulations of 2014 American Community Survey microdata. Updated 9/2015. Note: Does not include non-housing units. ]

**[Source: Insurance Information Institute of a 2015 poll data conducted by ORC International]

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Don’t become a statistic. If this is your first time learning about renters insurance, contact the advisors at RiskBlock  to ensure that you’re covered against life’s calamities.