By Donna Puncher CeMAP Introduction When choosing a mortgage, one of the most important decisions you’ll make is…
Published: July 14, 2016
The Mistake that’s Costing ‘Generation Rent’ more than £330million a Year
With property prices still considered to be at an all-time high, more people than ever are choosing to postpone joining the property ladder and instead, choosing to rent. This has proven to be the case for one generation more than others, with 16 to 34 year olds considered to be the most effected. However, now it would seem that this particular group of renters, or ‘generation rent’ as they are better known, could be losing out once again in another, big way.
According to comparethemarket.com, this is a generation that may be losing as much as £330 million in stolen and damaged goods. Why? Because most are renting properties without any contents insurance in place. More than four million renters in fact (48%), leaving them even more vulnerable to the devastation and expense in the aftermath of home burglaries and property damage.
Risking It All To Save Money?
It has been revealed by research that the leading cause for young renters to forego insurance, is that they believe the policies on offer to be too expensive. Whilst other renters mistakenly believe the value of their contents is not enough to warrant the need for any cover.
This is a mistake. Whilst to some renters it may seem as though they have no belongings of significant expense in their property to protect, they will have overlooked the many everyday installations and items that can really add up when in need of replacing. For example, kitchen and bathroom white goods, the cost of replacing an entire wardrobe of clothes… Remember, whilst you may not have individual items of huge expense, put the cost of all your possessions together and you may easily be left with a larger than expected sum.
On the other hand, it isn’t only the expense of cover putting young renters off the idea of home insurance. Research suggests it may also be an increased ‘risk-taking’ attitude among this younger generation that is partially responsible for this failure to protect their belongings.
Here’s what Damian Reilly, head of home insurance at comparethemarket.com, had to say on the matter –
‘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.’
Too High of a Price to Pay
That’s not to say that it’s only the young who can fail to get their belongings insured. According to comparethemarket.com, more than 115,000 rented households suffer the misfortune of a home burglary, with nearly half of those households not being insured.
If you’re one of the many renters living with uninsured contents, take a look around your home and ask yourself – could I afford to replace all of my belongings if I were to fall victim to a break-in?
For most, the realities of renting without a home and contents insurance policy would be too big a price to pay.