Nearly half of young adults failing to take out contents insurance

Published: 03/08/2020
  • Nearly half of 25 to34 year olds do not have contents insurance
  • A fifth of this age group fail to take out contents insurance because they don’t believe they own enough valuable objects to warrant taking out a policy, despite owning technology worth around £1,000.
  • A contents only home insurance policy, can be purchased for as little as £5.83 a month (not including instalment fees)
  • comparethemarket.com launches automated checking service which checks for new home insurance deals before the need to renew, helping customers to save money and keep their possessions safe

July 2020 –Those in their 20s and 30s are running the risk of being dangerously underinsured when it comes to their most prized possessions. New research from comparethemarket.com suggests that nearly half of 25 to 34 year olds do not have contents insurance. This compares to a much lower national average of 31%.  

Nearly a third  (30%) of this younger demographic without cover say they are underinsured because they don’t feel they can afford the policy, however a home insurance policy, covering contents, can be purchased for as little as £5.83 a month (not including instalment fees). One in 10 (9%) 25 to 34 year olds think cover is provided by their landlord however, while landlords hold responsibility that the building is insured, it is usually up to tenants to protect their valuables.  

A fifth (23%) of 25 to34 year olds fail to take out contents insurance because they don’t believe they own enough valuable objects to warrant taking out a policy. This is despite the fact that they estimate their technology and gadgets – such as smartphones, laptops and tablets – to be worth around £1,000. A smaller but significant proportion (14%) anticipate their valuables are worth over £2,000.  

Even among policyholders, the research reveals a general lack of awareness around contents insurance and what it can offer. Over a third (34%) of young people do not know that contents outside the home may be excluded from policies if items are not safely stored in sheds and garages. Equally, 41% had no knowledge of ‘single item limits’, which can exclude valuables worth over a certain amount from a policy.  

comparethemarket.com is launching a new automated feature for interested customers to sign up to, which can check for new deals, just before renewal, on home insurance as a response to the fact that millions of homeowners and renters across the UK end up renewing their insurance provider every year.  

Chris King, Head of Home Insurance at comparethemarket.com, commented:  

“For those in their 20s and 30s, leaving the family nest and setting up in their first home is a really exciting time. However, with that freedom comes more responsibility, especially when it comes to looking after your valuables. It is concerning that so many young people have not taken out contents insurance. With more people working from home due to the pandemic, our reliance on gadgets has increased as we use technology to work and stay in touch with family and friends. Comprehensive home insurance can be purchased inexpensively and will provide you with peace of mind that your possessions are safe and secure.” 

Notes to editors: 

Methodology 

Findings taken from a survey of 2,068 UK adults conducted by Populus between 15th – 17th May 2020 

Contents premium message of £5.83 is based on comparethemarket.com data in February 2020 showing that up to 50% of people could achieve a quote of £5.83 per month for their contents insurance based on the monthly cost when paying for the policy in one annual payment, excluding any interest charged on instalment payments. The ability to pay in instalments may be subject to status, depending on the provider’s requirements. 

About comparethemarket.com 

comparethemarket.com was launched in 2006 and has grown rapidly over the past fourteen years to become one of the UK’s leading price comparison websites. 

comparethemarket.com provides customers with an easy way to make the right choice for them on a wide range of products including motor, home, life, travel and pet insurance as well as utilities and money products such as credit cards and loans. 

comparethemarket.com actively works with its brand partners to help provide great services to customers. 

comparethemarket.com and comparethemeerkat.com are trading names of Compare The Market Limited. Compare The Market Limited is an insurance intermediary, which is authorised and regulated by the Financial Conduct Authority (Firm Reference Number 778488).