Renters dismiss contents insurance to cut costs
Energy bills, fuel and food costs have all risen and in a bid to cut back, 44% of renters admitted they don’t have contents insurance in place for personal possessions to help them save money.
Comparison site, comparethemarket.com, said this lack of protection puts them at risk of facing significant costs to replace or repair stolen, lost or damaged possessions.
A third (32%) of renters said they are less willing to take out home contents insurance due to the rising cost-of-living.
However, 54% of renters who have previously had items lost, damaged or stolen said that the value of their possessions was over £200.
For one in five (22%) renters, this figure rises to over £500 worth of items. As the cost-of-living rises, paying hundreds of pounds to replace these possessions could place renters, who have not taken out home contents insurance, under significant financial pressure, the comparison site warned.
Home contents insurance differs from landlord home insurance, which covers the building itself, necessary repairs, as well as the landlord’s own contents.
Nearly a fifth (18%) of renters aren’t taking out contents insurance as they mistakenly believe that their landlord’s home insurance policy covers their personal possessions, such as their mobile phone, tablet, wallet and bicycle.
But comparethemarket reiterated that tenants are responsible for having their own contents insurance policy for personal items.
Alex Hasty, director at comparethemarket.com, said: “The ongoing cost-of-living crisis is placing a substantial strain on many people’s finances. As a result, many renters are having to cut back not only on certain luxuries, such as dining out, but also on critical expenses, like contents insurance, to help relieve the burden of soaring living costs.
“As household bills and inflation continue to rise, we understand that people will be looking to cut back on expenditure during this difficult time. However, not having cover on personal possessions within your rental property could be costly, should these items unfortunately be misplaced, stolen or damaged.”
Hasty added that to find a good deal on home contents insurance, people should shop around online.
“We also suggest renters compare policies on existing bills, such as motor insurance, to mitigate broader financial pressures. Households could save an average of £150 if they switch to the cheapest motor and home insurance providers,” Hasty said.