Millennials Also Heavily Invested in Connected Security Devices Over the Past 12 Months
NEW YORK – August 27, 2020 – Assurant, Inc. (NYSE: AIZ), a leading global provider of lifestyle and housing solutions that support, protect and connect major consumer purchases, today announced the findings from its annual Renters Consumer Insights Benchmark Study. The nationwide study unearthed a “tipping point” for renters: renters are both underestimating the high cost of replacing their belongings (63%) while also unaware of the true cost of renters insurance (55%) that can protect those belongings. In addition, renters cited ease of submitting and tracking a claim as the most important aspect of the claims experience.
“Our study found that an overwhelming majority of respondents who have renters insurance believe the cost is reasonable, but those who do not are unaware of the cost or need,” said Ryan Lumsden, President of Multifamily Housing at Assurant. “We hope this study highlights the misconceptions around the affordability of protection, especially given the tough economic environment. By investing a little in renters insurance, renters could find themselves spared a lot of financial heartache due to theft or accident down the line.”
Additional findings from the study found that over the past 12 months, millennials, the largest group of insured renters in our study, significantly increased their usage of and investment in connected security devices. This may be driven by the respondents noting electronics are the most valuable items in their homes and what they think are most likely to be stolen, ahead of jewelry and money, creating the need for security devices along with insurance.
Assurant’s 2020 Multifamily Housing Benchmark Study also explored nuanced areas across other sectors, including:
Perspectives on Renters insurance
- 92% of those with renters insurance believe that the cost of coverage is reasonable. However, 55% of renters without coverage are unaware of the cost and 63% have possibly underestimated the potential cost of replacement for their belongings.
- The most common answer (31%) to why an individual does not have renters insurance is that they had never thought about, or it was never offered to them.
- 98% of respondents with renters insurance were satisfied with the claim experience (55% said it went smoothly and was happy with resolution, 43% cited that there were some issues but in the end were satisfied.)
Impetus for Insurance
- Respondents were motivated to purchase renters insurance due to fears of theft (17%) or damage (40%).
- 53% of respondents had either experienced, or knew someone who had experienced, a theft in their home or rental.
- While 62% of theft incidents occurred while the occupants were not home, 19% occurred while they were on the premises.
- Social media could be one of the culprits. Respondents reported that 55% posted information about vacationing away from home on social media while still on the trip.
- Since last year, there has been a marked increase in the usage of home security devices in the rental environment including an 87% increase in mobile security alerts, a 62% increase in alarm systems and light timers and a 54% increase in video camera usage.
- Consumers feel connected devices are worth the cost. Of those surveyed, 61% said they would pay higher rent for a connected doorbell, compared to 54% in 2019.
Assurant conducted a study of 802 individuals between May 18 and May 29, 2020 to gain consumer insights into rental households and their views on security and liability issues, as well as general knowledge, perceptions, and usage of renters insurance.
Assurant, Inc. (NYSE: AIZ) is a leading global provider of lifestyle and housing solutions that support, protect and connect major consumer purchases. Anticipating the evolving needs of consumers, Assurant partners with the world’s leading brands to develop innovative products and services and to deliver an enhanced customer experience. A Fortune 500 company with a presence in 21 countries, Assurant offers mobile device solutions; extended service contracts; vehicle protection services; pre-funded funeral insurance; renters insurance; lender-placed insurance products; and other specialty products. The Assurant Foundation strengthens communities by supporting charitable partners that help protect where people live and can thrive, connect with local resources, inspire inclusion and prepare leaders of the future.