Many Hispanic Renters Overestimate Cost of Insurance

Almost half (43 percent) of Hispanics without renters insurance think they cannot afford it but they overestimate the cost, a new survey shows.

Eighty-eight percent of respondents in the Hispanic market survey by State Farm overestimate 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.

Hispanics represent about half of all renters. Yet only 29 percent report having renters insurance, according to State Farm.

Among respondents without renters insurance more than one third (34 percent) said they had never heard of renters insurance. Further, most overestimated the cost of coverage and underestimated the value of their property.

The study of more than 500 renters was designed to gauge awareness and understanding of renters insurance in the Hispanic community.

“There seem to be some misconceptions when it comes to renters insurance,” said Stephanie Colegrove, operations vice president of 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.”

More than 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.

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