Mike Causey
                                Guest Commentary

Mike Causey

Guest Commentary

A recent survey revealed some surprising news regarding younger adults. Most of them don’t have a good grasp on the importance of having adequate insurance. Many also don’t understand basic insurance terms, such as “deductibles” and “co-pays.”

The survey was conducted by the national Association of Insurance Commissioners. The survey found that while 35% of Generation Z adults had protection plans for their mobile phones, only 21% had renters’ insurance.

Generation Z, also known as Gen Z or Zoomers, are those born from 1997 to 2012. Some are still teenagers finishing their high school years and preparing for college. Others are in college, have just completed college or are in the early stages of their professional careers.

The survey found that only 19% knew what “out of network” meant. Only 27% of Gen Z adults could define “deductible” and 29% knew the definition of “copay.”

A renters’ insurance policy is something that Gen Zers headed off to college or getting an apartment should consider. Many may not know that the landlord’s insurance policy will not cover the renter’s personal items, such as clothing, furniture, televisions and other appliances, cookware, laptops and other belongings in case they are lost in a fire, storm or are stolen. Landlord policies only cover the building itself.

In addition, a renters’ policy can shield you from liability for injury to others or damage to the rental property as a result of fire, smoke or explosion.

Here’s the good news. Renters’ insurance isn’t very expensive. Renters’ insurance premiums may be $25 or less per month, depending on where you live and how much coverage you purchase. Higher amounts of coverage would cost more.

College students living in a dorm room may be covered under their parents’ homeowners’ insurance policy. So it’s best to check with your insurance agent to understand your limitations and any additional coverage you may need.

As always, it’s important to read your insurance policy and make sure you understand what is covered and what isn’t. If you have any questions, make sure you ask your insurance agent.

Also, if you need help with your insurance, feel free to call our toll-free number at the Department of Insurance at 855-408-1212 between 8 a.m. and 5 p.m. Monday through Friday to speak to a consumer expert. Or you may visit our webpage at www.ncdoi.gov.

By the way, “out of network” refers to doctors and facilities outside your health insurance HMO or PPO network which may result in you being charged the full price of a service or a higher payment. “Deductible” is the amount you need to satisfy first before your insurance company will begin to cover the cost of your care. “Copay” is a designated amount that is due to the provider when you obtain services.

Mike Causey is the North Carolina Insurance Commissioner.