Within the property industry, there is a lot of information that focuses on protecting landlords and their properties from possible claims from tenants. Despite there being protection for landlords, it seems that many renters are continuing to take serious risks when it comes to their own belongings.
Countless landlords possess comprehensive landlords insurance that covers them against any damage to their property. In other terms, providing the landlord’s property is insured, this would allow them to claim back money for any damages or loss to the building. However, this often does not cover tenants which means that their personal possessions are not covered.
As a result, if the property is broken into or damaged, then if the tenant’s belongings are lost or damaged also, then they are unable to claim back any money if they haven’t bought contents insurance.
A survey from YouGov, commissioned by Paymentshield, found that 54% of those living in rented accommodation do not have contents insurance.
Alongside this, 16% of tenants said that they had suffered a fire, floor, theft, burst water pipe, lost keys or damage to their or their landlord’s belongings in the last 12 months.
Rana Ali, Paymentshield’s Head of Business Development, commented: ““What these figures capture is the vulnerability of renters to financial disaster, either due to not being covered by a tenants’ contents insurance policy in the first place, or by not being aware of what exactly a policy covers them for and when policyholders are eligible for compensation.”
This research also highlighted the fact that some renters (39%) do not feel confident when it comes to understanding what services contents insurance products provide and other renters (41%) feel that they are not confident enough that they have the right knowledge in relation to contents insurance policies.
Ali added: “Despite relatively high levels of anxiety, many renters seem to falsely believe that nothing will ever actually damage their belongings. But detrimental events such as floods do happen, and, unfortunately, are becoming commonplace in the UK. Paying out of pocket to cover the cost of such damage could effectively wipe out people’s life savings.
“We call on insurers and every party within the lettings chain – from landlords to tenant referencing firms – to go further in raising awareness both with current and prospective tenants on the value of contents insurance and the conditions for making a claim.”