Paymentshield research has revealed that only one in three renters have contents insurance.
The insurance firm wants on the lettings industry to help educate tenants.
A recent YouGov poll, commissioned by Paymentshield to over 1,000 adults, found that 67% of those living in a rented property do not have contents insurance. That equates to over nine million renters in the UK living in a home where their possessions are not protected from being lost, stolen or damaged.
However 84% of homeowners have contents insurance in place.
Paymentshield believes there to be multiple reasons behind the low numbers among renters, including tenants underestimating the value of their contents and deeming insurance to be unnecessary or expensive. Paymentshield also feels that the figures demonstrate that the industry isn’t talking adequately enough to tenants about their needs.
Rob Evans (pictured), Paymentshield’s CEO, said: “These figures present a stark warning for tenants, landlords and lettings agents, as not having the adequate insurance in place can lead to disastrous financial consequences. Many tenants moving into privately rented or social housing wrongly assume that their landlord’s insurance will cover them for their own belongings. The onus is on the tenant to get the right insurance in place, but the lettings industry also has a duty to help educate incoming tenants and plug the insurance gap.
“The financial advice industry centred on mortgages is a multi-billion pound market. When homeowners arrange a mortgage, they typically get holistic financial advice and are required to take out buildings insurance by their lender – adding contents cover is a natural progression. Yet, most tenants don’t discuss their protection needs when they enter into a new home, and so many are unaware of the risks they are exposed to or the cover available.
“As our research shows, very few are going looking for themselves, resulting in millions of tenants being uninsured.”
The research also found that 25% of those that had insurance in place were unsure if the cover was adequate.