New research by The Co-Operative Insurance has revealed that a third (33%) of renters have no form of insurance to protect their home’s contents.
This number is almost six times higher than the number of homeowners without contents insurance, which stands at just 6%.
There are two types of home insurance — buildings and contents. Tenants don’t need buildings insurance as this is taken care of by their landlord to cover any damage to the building itself, but contents insurance covers all of your possessions. Without contents cover tenants face losing everything in the case of a fire, burglary, or other incident.
Top reasons for going uninsured
The most common reason for not having contents insurance (44%) is that it’s too expensive, despite the fact the average home contents policy costs just £2.44 per week.
The average value of contents estimated by renters is £16,644, but 29% of respondents felt their possessions weren’t worth enough to insure.
Just over a quarter (26%) said they don’t have contents insurance because they only rent their property rather than owning it. While it’s true there’s no legal obligation to have home insurance as a tenant, those going without could face a hefty bill if their possessions were damaged or stolen.
Some renters (3%) thought their contents would be covered under their landlord’s insurance — they’d be in for a nasty surprise if they ever wished to claim.
Lack of insurance could be costly
Tenants could find themselves out of pocket if they need to replace their possessions after an incident in their home. The Co-Operative’s study revealed the average claim for contents is £1,700, and this rises to £11,000 in the event of a fire. The average claim for accidental damage is £550.
Anthony Lewis, head of insurance for The Co-Operative Insurance, said: “This research uncovers a worrying insurance gaps, amongst a growing proportion of the UK population. Prized possessions and home contents are worth protecting whether people own or rent their property, and out 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.”