The Importance of Renters Insurance for Millennials

Renters Insurance NJ

The Millennials generation is getting older. The oldest of this generation have been out of college for a few years now and many of them were forced to move back in with their parents when the recession hit. However, these same young adults, as well as the ones who have graduated after them, are starting to move out of those safe homes and into the housing market.

 

Unlike their parents, millennials have shown a preference for renting rather than actually buying a house. Perhaps this is because of their initial struggles moving out and their vivid memories of the recession. Whatever the cause, it is important for these young adults to make sure they are covered by NJ renters insurance.

 

This generation faces constraints that their parents most likely managed to avoid, such high debt levels as a result of student loans. This debt, as well as tighter credit standards that lenders now impost on potential borrowers, is preventing them from becoming homeowners, but could also prevent them from making the smart decision to get NJ renters insurance.

 

In fact, according to a 2013 survey from the Insurance Information Institute, only 35% of renters had insurance coverage, as opposed to 96% of homeowners. This may be because millennials, many of whom are new to living on their own, assume that their landlord’s insurance will cover them. However, what they do not realize is that their personal possessions are not covered if stolen or damaged without the possession of NJ renters insurance.

 

While this benefit should be enough to convince these college graduates to invest a little bit of their money into renters insurance, another benefit that it typically provides is coverage of living expenses should the rental space be inhabitable do to a fire or other disaster on the coverage list.

 

Most recent college graduates are certainly low on cash and are looking for the cheapest way to live while they start their careers and save their money. However, at an average of $12 – $15 per month, renters insurance should be a no brainer, even for the most cash-strapped graduate because of what it can save them if anything were to happen to them or their property while renting that first apartment.

 

photo credit: kadluba cc

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