With foreclosures rising and more homeowners becoming renters, Allstate
survey points to need for better home protection, home inventory check
lists and education
BUFFALO GROVE, Ill., Sept. 8 /PRNewswire-FirstCall/ -- As the number of
Wisconsin residents renting homes increases with the current housing
foreclosure crisis, a new survey released by Allstate finds most renters
are inadequately prepared to protect their homes and belongings. The share
of rental households jumped by about 1 million in 2007 and this group is
likely to expand further if foreclosure trends continue, according to
Harvard University's Joint Center for Housing Studies. With no relief in
sight for the housing market, it is critical for renters to be prepared to
protect their homes and possessions in case of a loss.
While homeowner coverage is required as a part of most mortgages,
renters face no such insurance requirement. As a result, just 40 percent of
survey respondents said they have renters insurance, meaning that roughly
half of the approximately 87 million Americans living in rental housing do
not have insurance to cover their belongings in case of loss.
The survey found that the biggest reasons renters don't purchase
renters insurance are: 1) they haven't made the time to look into it (43
percent) or 2) they believe the coverage is too expensive (33 percent).
Various other reasons such as not owning enough valuables to justify having
the insurance and believing landlords are responsible for insuring renter's
personal property were given by 23 percent and 10 percent of respondents,
respectively.
Allstate's survey found more than two-thirds of renters say they have
not done a home inventory check list, or tried to estimate the cost of
replacing everything in their home in the past year or two. Without home
inventory check lists, renters may face challenges when filing a claim to
replace stolen or damaged property, possibly delaying payment from their
insurance provider. Fewer than one in five renters say they have taken
photographs or videotaped their possessions during the past two years to
help document what they own.
The survey found most renters underestimate the threat theft poses to
their belongings. Half (49 percent) of renters surveyed estimated the
number of annual burglaries and other property crimes in the U.S. at less
than 100,000, while the actual number of burglaries alone is 20 times that.
According to the FBI's most recent Uniform Crime Report, there were more
than 2 million burglaries in the U.S. in 2006. Only one in 20 renters
guessed the number was roughly in this range.
"This survey highlights the importance of educating American families
who rent about the risks facing their homes and possessions," said Doug
Borg, regional distribution leader for Allstate. "It's a wake-up call to
increase awareness of the available options to manage these risks."
Misperceptions about the price of renters insurance were particularly
telling. Three out of ten respondents thought renters insurance cost at
least three times as much as its actual price tag of an average of $15 per
month, and another 20 percent had no idea how much it cost. However, when
polled, six out of ten renters thought renters insurance was worthwhile,
even at an average of $20 per month. In reality, if a renter were to lose
all of their belongings such as furniture, clothing, electronics, a flat
screen TV or an iPhone, this minimal investment could mean tens of
thousands of dollars in savings to replace the entire contents of the
individual's home.
Additional Survey Stats
-- A majority of renters (54 percent) say that if they could protect
only one of several types of possessions from burglary or fire, they would
choose personal items such as photographs or letters. Sixty-eight percent
of women said they would save photos and letters compared to 40 percent of
men.
-- Three in ten respondents would save a personal computer, while
almost one in ten would save other personal electronic devices such as an
MP3 player or digital camera.
-- A mere 15 percent of respondents have a security or alarm system in
their home and only 67 percent lock their windows when they leave.
Fifty-four percent of those surveyed own a fire extinguisher.
Allstate has easy to use tools and valuable resources readily
accessible, including home inventory check lists to keep track of all
personal possessions as well as detailed information on property coverage
options. Go to http://www.allstate.com/renters-insurance to download a home
inventory checklist and for more important information.
About Allstate
The Allstate Corporation (NYSE: ALL) is the nation's largest publicly
held personal lines insurer. Widely known through the "You're In Good Hands
With Allstate(R)" slogan, Allstate is reinventing protection and retirement
to help individuals in approximately 17 million households protect what
they have today and better prepare for tomorrow. Customers can access
Allstate products and services such as auto insurance and homeowners
insurance through approximately 14,700 exclusive Allstate agencies and
financial representatives in the U.S. and Canada, or in select states at
allstate.com and 1-800 Allstate(R). Encompass(R) and Deerbrook(R) Insurance
brand property and casualty products are sold exclusively through
independent agents. The Allstate Financial Group provides life insurance,
supplemental accident and health insurance, annuity, banking and retirement
products designed for individual, institutional and worksite customers that
are distributed through Allstate agencies, independent agencies, financial
institutions and broker-dealers. Customers can also access information
about Allstate Financial Group products and services at
myallstatefinancial.com.
SOURCE Allstate Corporation
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Related links:
http://www.allstate.com
http://www.prnewswire.com/comp/109885.html /
CONTACT:
Ellie Klooster of Allstate Corporation,
+1-847-667-8108
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