A recent report conducted by Nationwide Building Society has shown that 48% of the UK private renting population have no home insurance cover at all; which roughly amounts to 2.13 million households spread out across the UK.*
Landlords hold a lot of responsibility regarding caring for their tenants.
An estimated 18% of tenants believe that their landlords arrange contents insurance for them.
It is important to note that a landlord’s insurance policy will not cover assets such as the furniture and electronics you own during your occupation, as standard.
On the other hand, whilst the cover responsible for landlords to sort out is buildings insurance, 26% of tenants were mistakenly paying for this according to the findings.
Darren Black, head of general insurance at Nationwide Building Society, stated:
“It’s concerning that many renters don’t have contents insurance and are living under the mistaken belief that their landlord has cover in place to protect their belongings if they are lost, stolen or damaged. They could also be putting their tenancy at risk as many landlords stipulate that they must have cover in place as part of their tenancy agreement.
When finances are tight, insurance can seem like an unnecessary expense, but without it you could end up losing everything you own. The majority of home insurance claims are for accidental damage, particularly at the moment when many of us are spending much more time at home.”
We’ve quickly summarised a few misconceptions regarding home insurance to help keep you informed:
‘I don’t own much so insurance is pointless’: It's easy to underestimate the value of our belongings until something happens to make us feel the loss more poignantly.
The value of your possessions adds up quite quickly; especially when considering any high-value jewellery, personal belongings and kitchen appliances you might have brought into the home.
‘I’m really careful, liability insurance seems a waste of money’: That may be true, but in life, accidents do happen.
Imagine you are leaning on someone’s fence whilst waiting for a friend and it breaks. You are responsible for paying for it despite it being an accident.
Your liability insurance (which could form part of your tenant insurance) will protect you from paying out of your own pocket.
‘If I have to leave in the case of a fire or theft, my landlord will help me’: Your landlord is not there to pay your living expenses whilst you’re waiting for repairs to be made or insurance claims to be sorted.
If you're in any doubt about needing insurance for your contents, we urge you to speak with a professional advisor, as online comparison sites can lead to your contents being undervalued and underinsured where guesswork is involved.
To be connected to a trusted source of information, contact us today.
*Mortgage Introducer
