Property experts can do more to educate renters on the importance of contents insurance as data from Compare the Market reveals that half of renters in the UK do not currently have a policy in place.
According to the survey, contents insurance is seen a financial burden as many renters without cover opt to save money instead (30%), or they can’t afford the insurance (28%), while 20% don’t see their contents as valuable enough to warrant protection. However, renters who have had a personal possession lost, stolen or damaged value those items at £888 on average. The typical premium for an annual contents insurance policy though Compare the Market costs less than £64, as of March 2024
Of those with a contents insurance policy, almost half of renters have it for their peace of mind, while 39% indicate they purchased a policy because they see the value of the protection, or they have specific valuable items that they want to insure. More than one in four bought contents insurance because a friend or family member recommended it.
The majority of renters who have had something lost, stolen, or damaged said that some, if not all, of those possessions were covered by contents insurance.
Despite most renters generally understanding what contents insurance is, how it works and what it covers – only one in three people (39%) admit they fully understand the nuances of their cover, and would need more information from those in the property industry.
Helen Phipps, Home Insurance Expert at Compare the Market, commented:
“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. It typically covers your personal belongings, should you be subject to events such as theft or damage. Contents policies may also include tenants’ liability cover which offers financial protection if you accidentally damage anything that belongs to your landlord, such as carpets or furniture.
“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.”
