48% of renters do not have contents insurance in place for personal possessions, and of those, 44% aren’t doing so in a bid to save money as the cost-of-living rises, according to newly released figures from comparethemarket.com.
This lack of protection puts them at risk of facing significant costs to replace or repair stolen, lost or damaged possessions. 32% of renters say that they are less willing to take out home contents insurance due to the rising cost of living.
54% of renters that have previously had items lost, damaged or stolen say that the value of their impacted possessions is over £200. For 22% of renters, this figure rises to over £500 worth of items. As the cost-of-living rises, paying hundreds of pounds to replace these possessions could place renters, who have not taken out home contents insurance, under significant financial pressure.
Home contents insurance differs from landlord home insurance, which covers the building itself, necessary repairs, as well as the landlord’s own contents. 18% of renters are not taking out contents insurance as they mistakenly believe that their landlord’s home insurance policy covers their personal possessions, such as their mobile phone, tablet, wallet and bicycle. Tenants are responsible for having their own contents insurance policy for personal items.
Alex Hasty, director at comparethemarket.com, said: “The ongoing cost-of-living crisis is placing a substantial strain on many people’s finances. As a result, many renters are having to cut back not only on certain luxuries, such as dining out but also on critical expenses, like contents insurance, to help relieve the burden of soaring living costs.
“As household bills and inflation continue to rise, we understand that people will be looking to cut back on expenditure during this difficult time. However, not having cover on personal possessions within your rental property could be costly, should these items, unfortunately, be misplaced, stolen or damaged.
“To help people find a great deal on their home contents insurance, we encourage them to shop around online. We also suggest renters compare policies on existing bills, such as motor insurance, to mitigate broader financial pressures. Households could save an average of £150 if they switch to the cheapest motor and home insurance providers.”