Soaring Number Of Renters Living Without Insurance Is Dangerous For Landlords & Tenants, Warns National Association Of Property Buyers

Figures showing rising numbers of renters choosing not to take out home insurance is dangerous for tenants and landlords, a leading property association has warned.

According to new analysis, nearly half of Britain’s 16 million renters go without cover, compared with only 20 percent of homeowners.

The phenomenon is even more acute among those living in house shares — 55 percent of flat or housemates have no insurance at all, based on the MoneySuperMarket data. In total, only 10 percent of tenants have renters’ insurance — a product that covers their contents and other unforeseen eventualities — while 27 per cent have just contents insurance.

Commenting on the figures, property expert Jonathan Rolande, from the National Association of Property Buyers, said: “A shocking stat but not entirely surprising. However, it is a dangerous trend for renters and for landlords.

“Renting, being more transient, means that many do not  feel compelled to take out insurance for their possessions either because they wrongly believe their landlord covers it, or because it is an easy way to save money at a time when rents and other living costs are so inflated.

“But tenants should consider the full costs if the worst happens and they lose their possessions in a burglary or fire. The average cost to replace contents is over £40,000 with the average insurance policy costing around £130 a year.  What’s more, many of us insure high-value items such as phones, computers, TVs, and laptops using separate ‘tech’ policies. It is possible that by insuring with a mainstream content company, these can be cancelled, offsetting much of the cost. However, it is important to be completely sure that the level of cover is sufficient.

“It may also surprise many to learn that a lot of landlords don’t have insurance, especially in flats, where the maintenance fund covers the building itself. If landlords neglect to take insurance they won’t be covered for tenant damage or other perils and again, if the worst happens, they won’t be able to claim for things such as curtains and other furnishings. They could also be open to claims from the tenant or their visitors for third-party liability risks.

“All in all, it is wise to have a good policy whether you own or rent. A policy that gives peace of mind and financial cover for under 40 pence a day is surely a good investment.”