Millennials are more likely to rent than to own their homes. But nearly six in 10 don't have renter's insurance, according to a new survey.
The Insurancequotes.com survey, conducted by Princeton Survey Research Associates, found 60 percent of 18- to 29-year-olds are renters—compared with just 36 percent of all Americans. But the majority of them lack coverage.
"I think that millennials just don't take the time to get renter's insurance," said Dick Power, a certified financial planner and founder of the Walpole, Mass.-based investment advisory firm Power Plans. "They don't have a concept of risk."
Since millennials may not be used to owning much of value, he added, they may not think about insuring their possessions until it's too late. But that can be a costly mistake.
Sean Keating, founder of Patriot Financial Advisors in Eatontown, New Jersey, said that one of his clients was living on the Jersey Shore when Hurricane Sandy struck in the fall of 2012. A carpenter who kept his tools and other work equipment in his home, he didn't have renter's insurance and lost thousands of dollars' worth of equipment to the storm, as well as money from the jobs he had to give up until he could replace them.
Events that devastating are unusual. But even with smaller incidents, from vandalism to water damage from burst pipes, having renters insurance can help you avoid big losses.