Don’t Insure Everything, Just The Things You Might Mind Losing

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ELIZABETH –  A new survey commissioned by Allstate Insurance Company, parent company of Allstate New Jersey Insurance Company (Allstate New Jersey), reveals Garden State college-aged adults are acquiring things at a prodigious pace. However, protecting those things is of little concern – to themselves or the parents who support them.

In the study, 60 percent of college-aged adults in New Jersey reported belongings worth more than $10,000 and 87 percent reported they could only afford to replace, at best, some of their things. Despite this, 53 percent had no insurance protection and 63 percent said it wasn’t likely they would purchase renters insurance anytime soon.

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In perhaps the best illustration of misplaced priorities, 30 percent of respondents reported spending $150-200 on clothes during any given month, which is roughly what insurance costs for an entire year.

“The data suggests to me that people aren’t thinking past the purchase,” said William P. Ballinger, President of Allstate New Jersey Insurance Company.  “It’s a shame because renters insurance is one of the smartest investments people in this situation can make and so few take advantage of it.”

A Bureau of Justice Statistics survey of households shows renters are 50 percent more likely to be burglarized than homeowners. This is yet another sobering reminder of how precarious the situation is for so many Americans opting to go without renters coverage.

In addition to covering your stuff, renters insurance also provides consumers with two very important coverages: liability protection and temporary living expenses.

Argentina Ramirez of Elizabeth, an Exclusive Agent with Allstate New Jersey, said, “College students often have guests in and out of their apartments. If one of their friends slips and falls inside their residence, renters insurance will help protect students against lawsuits by providing liability coverage.”

Ramirez added, “Renters insurance can also help students secure a temporary home away from home. Should their apartment be destroyed by a covered loss, such as a fire, a renter’s insurance policy will help cover temporary housing costs.”

The need for education is clear: 31 percent of respondents believed renters insurance to be as much as 15 times higher than the actual national average of $16 per month. Overall, 76 percent of respondents had misperceptions about the true cost of renters insurance.

To underscore how education helps to address this current trend, eight out of 10 of those surveyed without renters insurance at the outset, expressed interest in buying insurance once they learned basic information about the coverage.


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