11% of homeowners do not have a contents insurance policy, despite almost all homeowners (99%) recognising the value of having the protection, according to new research from Compare the Market.
The majority of homeowners (88%) have a contents insurance policy and the main reasons for doing so are to have peace of mind (60%), they recognise the value of having the protection (56%), or they have specific valuable items that they want to insure (19%). In comparison, 49% of renters do not currently have a contents insurance policy, however landlords may own the furniture in a rental property.
Of those homeowners without contents insurance, they admit trying to save money due to other living costs (35%), the cost of the insurance being too much when it is not legally required (23%), and the fact that they don’t deem their contents valuable enough to insure (30%).
However, most of those homeowners without a policy would consider purchasing one to cover their possessions, (47%) despite expensive living costs.
The most common personal items reported lost, stolen or damaged while living in an owned property include jewellery (11%), laptops/TVs (11%) and mobile phones (10%). The average value of items that were lost, stolen or damaged was £1,265.
The majority of these personal items were covered by the homeowner’s contents insurance (86%), although just 12% say their items were not covered by their contents insurance.
Julie Daniels, insurance specialist at Compare the Market, said: “Although there is no legal requirement for homeowners to possess a contents insurance policy, the cost of replacing lost, damaged, or stolen items can be significant. High living costs pose a challenge to homeowners managing their monthly bills, however the alternative expense of paying for lost or damaged items can be so much worse.
“Having a contents insurance policy can cover the cost of replacing your possessions in your home if they’re stolen, destroyed, or damaged. It can either be bought as a standalone policy or with buildings insurance as a combined home insurance policy. Mortgage lenders typically require households to purchase building insurance, and many households will buy a combined policy when they purchase their home.”