- Over 115,000 uninsured rented households have been the victim of domestic burglary – costing over £330 million every year
- 16 – 34 year olds most affected with 60,000 uninsured properties losing over £170 million
- 48% of renters do not have a contents insurance policy – issue more prevalent among young people with 55% admitting to not having a policy
Renters are losing over £330 million in stolen goods each year due to a lack of contents insurance, according to research by comparethemarket.com. The issue particularly affects 16 – 34 year olds or ‘Generation Rent’ which has had over £170 million stolen each year due home burglaries and an inability to claim back due to a lack of contents insurance.
Between October 2014 and September 2015, there were over 400,000 domestic burglary cases reported with an average cost of these burglaries standing at £2,833 equating to more than £1.1 billion each year. While most freehold and leasehold properties will likely have contents insurance rolled in with their wider home insurance policies and can therefore claim damages and loss back, rented households are vulnerable to losing thousands due to a lack of insurance.
Polling the views of more than 1000 renters, comparethemarket.com found that almost half (48%) of all renters had failed to take out a contents insurance policy equating to over 4 million of the 8.3 million rented households in the UK.
The lack of insurance among renters is particularly noticeable among the younger generation with 55% of 18 – 34 year olds admitting to not having a contents insurance policy. With so many failing to take out a policy, the cost of domestic burglaries where claims cannot be made comes to a total of over £170 million.
The research by comparethemarket.com also found that for those who failed to insure their contents, 43% did not do so because the policies on offer were too expensive, suggesting that many now see discretionary insurance policies as unaffordable. An additional quarter (25%) of those that don’t hold a policy thought that they did not have enough contents to justify taking out insurance to protect it.
Commenting on the findings, Damian Reilly, Head of Home Insurance, comparethemarket.com, said:
“This research shows an extremely worrying lack of insurance among renters in the UK, particularly among young people. The fact that over £330 million is lost to domestic burglary and is not covered is regrettable and unnecessary, as the cost of contents insurance policies is comparatively low. The figures show the financially devastating effect that a break-in can have on a household without insurance with the average domestic burglary costing £2,833, not even factoring in the psychological trauma.
“It makes sense that renters take out a policy to ensure that they are protected. Unfortunately, the statistics indicate that those who suffer are often those who can least afford to be and are least prepared.”
All statistics are from a survey, commissioned by comparethemarket.com and conducted by Populus, of 1000 renters around the UK. Data has also been sourced from ONS’s 2011 census. 2011 census data was also used to calculate the “four million rented UK properties” figure.
comparethemarket.com was launched in 2006 and has grown rapidly over the past nine years to become one of the UK’s leading price comparison websites.
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