25th November 2014
With both the cost of renting and the number of renters increasing*, new research by The Co-operative Insurance reveals a third (33%) of those in rented accommodation don’t have any form of home insurance to protect their contents**.
This proportion is almost six times larger than the comparative figure for those who own their own homes (6%).
The research reveals the most common reason that those renting have no contents cover is a belief that they can’t afford it (44%). This is in spite of recent industry data, which reveals that the average Home Contents policy costs just £2.44 per week***.
Furthermore, the findings highlight that almost a third of those renters without insurance feel that they don’t need contents cover as they don’t have expensive belongings (29%), whilst just over a quarter, believe they don’t need insurance as they rent rather than own a property (26%). Just under a fifth are happy to take the risk of not insuring their contents (16%).
Most common reasons those renting don’t have home contents insurance:
- Can’t afford it (44%)
- Don’t have expensive contents (29%)
- Because they rent (26%)
- Happy to take the risk (16%)
- Too many things excluded from the cover (7%)
- Will just pay for damage from savings (6%)
- Not got round to it yet (5%)
- Believe this is covered under landlords insurance (3%)
- Insurance is too complicated (2%)
- Didn’t renew last time the policy finished (1%)
The research also revealed that the average value of contents estimated by renters is £16,644, for homeowners this doubles to £31,651. Industry findings highlight that the average theft claim for contents now costs £1,700 whilst this rises to £11,000 in the event of a fire. The average claim for accidental damage is now £550***.
Anthony Lewis, Head of Insurance for The Co-operative Insurance comments: “This research uncovers a worrying insurance gap, amongst a growing proportion of the UK population. Prized possessions and home contents are worth protecting whether people own or rent their property, and our research suggests that many millions of people are taking a risk without any cover in place in the event of theft, or other perils such as flooding and fire.”
The research also shows that one in ten (10%) of those who rent, have stopped insuring their home over the last 5 years. This compares to just over one in twenty (6%) of those who own their own homes.
Overall the figures reveal the main factor behind people stopping insuring their homes, is a desire to save money (47%), but other factors also include moving to an area with a lower crime rate (20%) moving from owning a home into rented accommodation (20%), and the loss of employment (19%).
Why do people stop insuring their homes?
- Looking to save money (47%)
- Moved to area with lower crime rate (20%)
- Moved from owning home into rented accommodation (20%)
- You or partner lost job (19%)
- Installed additional security (14%)
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* ONS statistics. Last decade has seen the first rise in the percentage of households renting, since 1918, according to (ONS) 19 April 2013. ONS statistics - cost of renting a home in Britain rose by 1% in the year to September (ONS) 24 October 2014
** ICM conducted research with a nationally representative sample of 2049 UK adults on behalf of The Co-operative Insurance
***According to the ABI Home Insurance tracker for Quarter 3, 2014 (published November 5) for contents insurance, the average premium was £127, or £2.44 a week. This was down 1% on the same quarter last year
About The Co-operative Group
The Co-operative Group, which is the UK’s largest co-operative business with interests across food, funerals, insurance and legal services, has a clear purpose of championing a better way of doing business for you and your communities. Owned by millions of UK consumers, The Co-operative Group operates a total of 3,750 outlets, with more than 70,000 employees and an annual turnover of approximately £11 billion.