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Affordability concerns put half of UK renters off contents insurance

Affordability concerns put half of UK renters off contents insurance
Matt Browning
Written By:
Matt Browning
Posted:
14/05/2024
Updated:
14/05/2024

Issues around affordability are the main drivers putting off half of all UK renters from having contents insurance, research reveals.

A third (30%) do so to save money, and a similar number (28%) cannot afford to take out a policy.

Also, of the 1,000 respondents surveyed by Compare the Market, a fifth didn’t think the items they had at home were valuable enough to get covered.

However, among homeowners, only a tenth (11%) opted against having the cover.

The reasons renters choose to take out contents insurance is mostly for their peace of mind (41%), while over a third (39%) see the value in having a policy.

Having cover has been a worthwhile decision for many, as those who had either lost or damaged their personal possessions or had them stolen valued the item at an average of £888.

Further, around four-fifths of renters were covered by their policy, despite only a third (39%) understanding fully what was included under their agreement.

It’s younger renters who are more at risk of being unfamiliar with what their policy entails. More than two-thirds of residents aged under 25 were aware of the pitfalls of being under-insured, according to a separate study from GoCompare.

Policy uptake is ‘encouraging’

But, Helen Phipps, home insurance expert at Compare the Market, is pleased with the number of residents who opted for having a policy to cover their possessions.

Phipps said: “It’s encouraging that most renters recognise the importance of contents insurance. However, due to expensive living costs, many are trying to save money by not taking a policy out.

“For people in a financial position to do so, purchasing this insurance could help you avoid the substantial cost of replacing possessions.”

As well as covering you for possessions you own, Phipps also alerted renters to policies that cover tenants for damage to their landlord’s property. Possessions such as carpets and furniture that might encounter accidental damage were deemed the most likely items to get covered.

Phipps added: “We’d encourage renters to compare different levels of cover and prices before purchasing a policy.

“It’s also a good idea to encourage any friends or family members who rent to consider looking for contents cover to ensure they have protection for their possessions.”