Third of tenants fail to take out contents cover

A third of tenants in the private rented sector have no contents insurance at all - a figure that is six times larger than for owner occupiers.

Research by the Co-Op says that the most common reason that those renting have no contents cover is a belief that they can’t afford it. Many do not believe they need contents cover as they don’t have expensive belongings while just over 25 per cent believe they don’t need insurance as they rent rather than own a property. 

The research also revealed that the average value of contents estimated by renters is £16,644 while for home owners this doubles to £31,651. Industry findings highlight that the average theft claim for contents now costs £1,700 whilst this rises to £11,000 in the event of a fire. The average claim for accidental damage is now £550.

The research also shows that one in 10 of those who rent have actually stopped insuring their home over the last five years, compared to just six per cent of those who own their own homes. The main reason for dropping insurance is to save money.