It's no surprise, homeownership is a financial hurdle many millennials currently face.
While millennials are coming up with new solutions to increasing housing prices, insurance plans are maintaining the pace with creative plans that cover different types of living situations. Just because you don’t own a home doesn’t mean you don’t need to be protected. Below we lay out modern scenarios many millennials might find themselves in where home, condo or tenant insurance would have been a big help.
You have fire or water damage in the condo you own or rent:
Most people think fire is the number one cause of home insurance claims, but, surprisingly, it’s actually water damage. Your home or condo insurance can cover your belongings, so you don’t have to buy everything brand new out of your own pocket. Take a moment to think about what you’d have to replace if the worst happened and you lost everything. Really think about the cost of your clothes, furniture, appliances, cosmetics, and electronics. Those items alone can get expensive quite quickly, but you also have to consider the mundane things like sheets, towels, and dishes. Even if you did happen to have $10,000 lying around, this is probably not the way you’d like to spend it.
You need to live somewhere while your home is getting repaired or worse, have to move:
Picture this: the worst has happened, and you need to stay in a hotel for a couple weeks while your home is being repaired. Home insurance will cover your hotel costs. In fact, the absolute worst case, if you need to hire movers to move items into a new condo or home, the right insurance policy can make sure you’re covered for that as well.
You lose valuables on a trip:
We all have some version of a travelling story that involves leaving a laptop1 behind on a flight or having a camera stolen right out from under our nose. Losing expensive hardware is a valid fear for many while travelling and something that can cast a terrible shadow over an otherwise wonderful trip. It doesn’t have to be this way. A little-known fact about home, condo or tenant insurance is that it extends beyond just covering items in your home – it can cover items that you lose on a trip. It might be better to pay a $500 deductible2 for an insurance claim rather than pay $5,000 for a brand-new camera. You can go a step further and specifically list items like your camera, laptop, or GoPro so that if something happens on a trip you would pay a lower deductible, but this comes with a price tag.
Even though millennial living situations might be vastly different than the previous generation, it doesn’t mean that millennials don’t need to be insured. RBC Insurance has options to cover your living arrangements. You can make an appointment with an advisor who will give you personalized advice based on your unique living situation – there is no cost for advice and no obligation to buy.
Property and auto insurance for individuals and families is underwritten by Aviva General Insurance Company.
1) Insurance excludes the cost of data reproduction on computers.
2) Deductible: the amount of money you pay in an insurance claim before the insurance coverage pays for you.
This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.