Recent findings from Compare the Market highlight a notable disparity in contents insurance coverage, with half of UK renters lacking a policy compared to only a small fraction of homeowners.
Cost Concerns Lead to Insurance Gap
Research reveals that 49% of renters do not hold a contents insurance policy, with the primary reasons being to save money due to other living expenses (30%) and the inability to afford insurance (28%). Additionally, 20% of renters do not see their possessions as valuable enough to warrant such coverage. This contrasts sharply with homeowners, of whom only 11% lack contents insurance.
Perceived Value and Recommendations Influence Decisions
Among those renters who have opted for contents insurance, 41% did so for peace of mind, and 39% recognised the value of having such protection. Interestingly, 21% purchased policies to cover specific valuable items. Recommendations from friends or family also played a role, with 27% citing this as a reason for obtaining their insurance.
Helen Phipps, a Home Insurance Expert at Compare the Market, commented on the situation: “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.” She suggests that for those in a financial position to do so, purchasing this insurance could mitigate the substantial cost of replacing possessions lost through theft or damage. Phipps also recommends that renters compare different levels of cover and prices before purchasing a policy and encourage others to consider getting coverage.
The findings underscore the need for increased awareness about the benefits of contents insurance, especially as it can offer financial protection in the event of damage to personal belongings or accidental damage to landlord-owned items like carpets or furniture.
