New research has found that the vast majority of tenants do not have contents insurance.
According to a study by the Halifax, two-thirds of tenants have not taken out insurance for their belongings, with many assuming their landlord’s insurance will cover any damage to their possessions.
Research by Landlord Today showed that 77% of landlords have taken out insurance policies that cover them against damage to the property, while the study from the Halifax showed 62% of UK renters have no contents insurance.
While landlords are encouraged - and legally required in some cases - to take out appropriate insurance, tenants are not under any obligation to do so.
Young renters in particular are playing with fire, with three quarters (70%) not having contents insurance in place. Many of those asked (40%) cited cost as their main reason for not taking out insurance for their possessions.
Just over a quarter (26%) of renters simply do not think their possessions are worth enough to insure them.
Other studies have shown that many tenants assume their landlord is responsible for any breakages or damage to their personal possessions. But they are wrong; providing the property meets all legal safety standards and is in good condition prior to the damage, landlords are not liable for a tenant's belongings.
Contents insurance covers clothes, appliances, furniture, technology including computers, decorations and any other personal belongings that a tenant wishes to cover from accidental damage, fire, flood or theft.
This would include belongings destroyed by burst pipes, for example. While the landlord would be responsible for repairing the plumbing and any damage done to property, anything belonging to the tenant’s possessions damaged by the leak would not be covered under the landlord’s insurance, meaning they would have to fork out for repairs or a replacement themselves if they do not have the right insurance.
To save any dispute, as a landlord, it may be a good idea to flag this to tenants and encourage them to take out their own insurance.
Call 0800 294 4522 to get a quick quote today!