There is often a lot of focus on helping homeowners better protect themselves and their property from potential insurance claims, but many renters are often left taking major risks when it comes to their own belongings.
The majority of landlords also possess comprehensive landlords insurance that covers them against damage to their property, but this often does not cover tenants.
In the event of a fire, for example, the landlord’s property would be insured and he or she would get money for the loss of the building, but the tenant’s contents may not be covered, meaning that a tenant could lose all of their belongings and get nothing back.
Yet, many people who rent their homes do not possess contents insurance, according to a new study, meaning that they are taking a big gamble with their personal items if their property is broken into or damaged.
A YouGov poll, commissioned by Paymentshield to over 1,000 adults, revealed that 67% of those living in a rented property do not have contents insurance.
The poll also found that a quarter of those with insurance were not sure it was adequate enough.
In comparison, homeowners are taking a much more proactive approach, with 84% having 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 is not talking adequately enough to tenants about their needs.
The home contents insurance provider is calling on the letting industry to help educate tenants and plug the insurance blackhole.
Paymentshield CEO Rob Evans 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.”