With both the cost of renting and the number of renters increasing in the UK new research has found that a third of tenants don’t have any form of home insurance to protect their contents.
This proportion is almost six times larger than the comparative figure for those who own their own homes which is 6%, according to the research by Co-operative Insurance.
The research reveals the most common reason that those renting have no contents cover is a belief that they can’t afford it with this affecting 44%. This is in spite of recent industry data, which reveals that the average home contents policy costs just £2.44 per week.
Furthermore, the findings highlight that 29% of those without insurance feel that they don’t need contents cover as they don’t have expensive belongings whilst 26% believe they don’t need insurance as they rent rather than own a property and 16% are happy to take the risk of not insuring their contents.
Some 7% said that they don’t have contents insurance as there are too many things excluded from the cover, 6% will just pay for damage from savings, 5% have not got round to it yet, 3% believe this is covered under landlords insurance, 2% think insurance is too complicated and 1% didn’t renew last time their policy finished.
The research also revealed that the average value of contents estimated by renters is £16,644, for home owners this doubles to £31,651. Industry findings highlight that the average theft claim for contents now costs £1,700 whilst this rises to £11,000 in the event of a fire. The average claim for accidental damage is now £550.
‘This research uncovers a worrying insurance gap, amongst a growing proportion of the UK population,’ said Anthony Lewis, Head of Insurance for The Co-operative Insurance.
‘Prized possessions and home contents are worth protecting whether people own or rent their property, and our research suggests that many millions of people are taking a risk without any cover in place in the event of theft, or other perils such as flooding and fire,’ he added.
The research also shows that 10% of those who rent, have stopped insuring their home over the last five years. This compares to just 6% of those who own their own homes.
Overall the figures reveal the main factor behind people stopping insuring their homes, is a desire to save money with 47% saying so, while 20% say they have moved to an area with a lower crime rate, the same number have moved from owning a home into rented accommodation, 19% lost their job and 14% have installed extra security.