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Quarter Of Renters Shun Home Insurance
Image by Oleksandr Pidvalnyi from Pixabay
A quarter of private and social renters do not have any form of home insurance, according to a poll by AA Insurance Services.
In a survey of 798 private tenants, 26% said that they did not have any form of insurance in place, but 55% said they had cover for their contents, while around one in 10 said they had buildings and contents cover (9%).
In comparison, the survey of 669 tenants of housing association and local authorities found that 23% did not have any form of home insurance. Three fifths (62%) have contents cover, and 6% have home insurance covering them for both building and contents cover.
In contrast, 92% of homeowners have buildings and contents insurance, however 3% only have contents insurance, one in 50 (2%) have only purchased buildings cover and one in 100 have no insurance in place.
Tenants may have some insurance included within their bills paid to the landlord, however The AA is urging renters to check the small print as they may think they are covered for more than they believe.
Are you at risk of being underinsured?
Where there is no insurance policy in place, tenants are underinsured. This is where they have no insurance in place to cover their needs. While the landlord will be responsible for the upkeep and maintenance of the property, the tenant cannot make a claim for any damage caused to items within the home if they don’t have a contents insurance policy.
Similarly, any homeowner can be underinsured too if they take out a policy that simply does not cover what they wanted it to. When home insurance policies come up for renewal, people should take the time to check that the valuations are set correctly and ensure that all items that need protecting are covered.
Gus Park, managing director for AA Insurance Services, said;
“During a cost of living crisis, people look for ways to reduce their outgoings. Worryingly, some may choose to drop their home insurance in an effort to save money.
“While there is a strong take up of contents cover for renters, the reality is that some tenants are running an unnecessary risk. Contents insurance is very affordable** and provides piece of mind that their belongings are protected should the worst happen.
“Rather than discover at the point of claim that something isn’t covered, we urge everyone to check their insurance documents so they can be certain that they can make a claim if they need to. Cover for accidental damages, precious valuables and bikes are often additional, so if you want them included in the policy they need to be added on.”