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Hispanics represent over half of all renters in the U.S., most are uninsured

Staff writer |
Only 29 percent of Hispanics who rent their homes report having renters insurance, according to a new survey by State Farm.

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In fact, among respondents without renters insurance more than one third (34%) said they had never heard of renters insurance.

Further, 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 study comprised of over 500 renters was designed to gauge awareness and understanding of renters insurance in the Hispanic community. Results indicated that almost half (43%) of survey respondents without renters insurance think they cannot afford it.

However, 88% of respondents overestimated what a typical renters 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 percent 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.

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 20131, representing a growth rate of 60 percent with Hispanic households representing over half of all renters2.

As more Hispanic families rent their primary residences, understanding the benefit of having renters insurance will become increasingly important.

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