Tenants without insurance
- Published: Tuesday 23 March, 2021
- By: Commercial Trust
New data from Nationwide Building Society shows that almost half of private tenants do not have home insurance.
This equates to 2.13 million households in the PRS.
The results of the survey showed that only 52% of the tenants who answered the questions had contents cover.
Of the remainder of the tenants surveyed, 22% reportedly have no cover at all, and a further 26% did not know if they had cover or not.
Almost 20% of renters are under the impression that it’s the landlord’s responsibility to arrange contents insurance, whilst others put off arranging cover as it is a monthly expense.
The research also highlighted that many renters (26%) are paying for buildings insurance, which is the responsibility of the landlord.
This lack of awareness may mean that many of these tenants are in breach of their tenancy agreements, with 34% stating that they did not know if it was within their contract or not.
According to the survey, landlords are starting to clamp down on tenants without insurance, with 39% being required to arrange contents insurance before giving access to the property.
Further to this, 67% of landlords answered that they routinely ask to see proof of contents insurance before they could sign their tenancy agreement.
This means that whilst some protection is afforded to landlords in the form of deposits, they are also ensuring that their tenants are not breaching their tenancy agreement, and saving themselves headaches and confusion down the line if something were to happen to the property.
Darren Black, head of general insurance at Nationwide Building Society, said
“It’s concerning that many renters don’t have contents insurance and are living under the mistaken belief that their landlord has cover in place to protect their belongings if they are lost, stolen or damaged.”
“They could also be putting their tenancy at risk as many landlords stipulate that they must have cover in place as part of their tenancy agreement.”
“When finances are tight, insurance can seem like an unnecessary expense, but without it you could end up losing everything you own.”
“The majority of home insurance claims are for accidental damage, particularly at the moment when many of us are spending much more time at home.”
“For a few pounds a month, home insurance can provide real peace of mind that you are protected should the worst happen.”
This information should not be interpreted as financial advice. Mortgage and loan rates are subject to change.