BLOOMINGTON, IL—A new survey by State Farm shows that only 29% of Hispanics who rent their homes report having renters insurance. In fact, among respondents without renters insurance more than one third had never heard of renters insurance. Furthermore, most overestimated the cost of coverage and underestimated the value of their property. Not having renters insurance could leave Hispanic families vulnerable to a financial catastrophe especially during the holiday season.
The insurance company's strategic resources department hired a vendor that surveyed 539 renters. The results shine a light on a group increasingly important in the commercial real estate world. "There seem to be some misconceptions when it comes to renters insurance," says Stephanie Colegrove, operations vice president – underwriting. "We want everyone to know that if their possessions are stolen during a break-in, or damaged by a fire or another covered loss, a renters insurance policy can help them replace their valuables."
According to a 2013 State of Hispanic Homeownership report the number of Hispanic households has grown from 9.2 million in 2000 to 14.7 million in 2013, a growth rate of 60%. Hispanic households now represent over half of all renters. As more Hispanic families rent their primary residences, understanding the benefit of renters insurance will become increasingly important.
Results indicated that almost half of survey respondents without renters insurance think they cannot afford it. However, 88% of respondents overestimated what a typical policy costs per month, with over half thinking it costs $50 or more a month, when in many cases renters insurance can cost as little as $12 a month.
Over 50% of respondents also believe their belongings are worth less than $10,000. In fact, personal belongings - including clothes, furniture and electronics - can cost much more to replace. Replacing those belongings could create a significant financial burden.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
