The importance of contents insurance
January 27, 2014
A recent study by YouGov, which polled 2,141 people last year, found that only 4 in 10 Private Rented Sector (PRS) tenants, who rent from a private landlord, have bothered to get some form of contents insurance. This is in stark contrast to homeowners/mortgage holders were, around, 9 in 10 have contents insurance.
When it comes to satisfaction levels with their contents insurance policy around 9 in 10 homeowners/mortgage holders have good things to say in regards to contents insurance while 7 in 10 PRS tenants having positive things to say.
The YouGov study found that the highest ranked opinions were that the policies are “essential” and provide “peace of mind”. But the study highlights the fact that renters are far more likely to think that policies are not worth the money with PRS tenants thrice as likely to think contents policies are “nice to have but not essential”.
Simon Mottram, YouGov’s director of financial and professional services, said: “The figures show the challenges the industry has in selling policies to renters…. What is more, owning a contents policy is often not a stipulation of a tenancy agreement… the belief still exists among many tenants that they don’t need contents insurance… Presently, a great number of renters feel they can live without contents insurance.”
Kelly Smith, Young London’s Head of Contracts and Compliance, told us, “While having some form of insurance is important an agency can not sell insurance products or recommend companies that provide insurance products. However, an agency can make the resident contractually responsible for insuring their own belongings and this should be made clear to them at the outset.”
As Young London are driven to give the best possible customer service we provide all our applicants and residents with a guide to Home Insurance highlighting the benefits and pitfalls of not having insurance.