In a surprising revelation, a recent YouGov survey indicates that private tenants in the UK are more likely to have a TV streaming service subscription than contents insurance. Commissioned by General Insurance solutions provider Paymentshield, the survey found that 53% of renters subscribe to platforms like Netflix, while only 51% have contents insurance. The ratio even rises to 60% for respondents aged 25-54 favouring streaming services.
The UK’s rental insurance gap has shown a gradual decrease over the years, with the proportion of insured tenants growing from 33% in 2020 and 46% in 2022. Despite this improvement, Paymentshield warns that the slower uptake and lack of awareness still present substantial financial risks for those in rented properties, especially considering the current rise in living costs.
London is particularly vulnerable, with almost 58% of tenants lacking contents insurance. The capital’s renters also reported a higher occurrence of fire, flood, or theft within their property over the last 12 months compared to other regions of the UK.
Another alarming detail is that only 20% of insured respondents have a policy specifically tailored for tenants. Therefore, the vast majority might not be covered for situations typical to rented accommodations, such as accidental damage to the landlord’s property or belongings. This type of coverage, known as liability insurance, is a standard inclusion in Paymentshield’s tenants’ contents insurance.
Shockingly, half of the surveyed tenants were unaware of tenants’ liability insurance. Despite this, respondents were more concerned about damaging the landlord’s property than their own, with 20% of tenants aged 18-34 admitting to having caused such damage previously.
Cost perception is the primary reason for not having contents insurance, with 42% of tenants considering it too expensive. This belief persists despite the average monthly insurance policy cost being comparable to a Netflix subscription.
A majority of tenants preferred a monthly payment model, with 42% choosing a rolling monthly policy over an annual payment, preferred by 35%.
The survey also highlighted the high value of personal belongings at risk due to lack of contents insurance. One third (33%) of tenants estimate their belongings to be worth over £10,000, yet almost 17% within this group lack insurance. Additionally, almost 27% of retired respondents, who often possess higher-value items, do not have contents insurance.
On facing a scenario where their possessions are damaged beyond repair, 30% of respondents would save from scratch, and nearly 17% would plunge into debt.
Rana Ali, Director of Distribution for Lettings at Paymentshield, expressed concern over these findings:
“Our research shows that too many tenants would rather reactively spend than proactively protect, taking a huge financial risk, and this is largely due to the misconception that tenants’ contents insurance is too expensive. We need to educate tenants on the importance of insurance and encourage timely purchases during their rental journey. We’re partnering with rental chains to embed our technology into their online platforms, providing automatic quotes to tenants and offering monthly payment options. We believe that once tenants realise the cost is lower than they assumed, they’re more likely to purchase. After all, if you can afford a monthly Netflix subscription, why wouldn’t you spend the same amount on protecting your belongings and guarding against damaging the landlord’s property?”
