Tenants in the UK are said to be waving goodbye to over £330 million of their personal belongings each and every year, with only having themselves to blame for not being able to recoup their losses, according to home insurance experts. Due to thousands of renters failing to protect their worldly possession courtesy of suitable home contents insurance cover, means that there’s no financial reimbursement on offer if and when they become victims of theft according to www.whatmortgage.co.uk.
It’s just published the shock findings of a recent study undertaken by one of Britain’s leading insurance product price comparison websites which paints an altogether gloomy picture amongst tenants who rent their homes from landlords.
Reported domestic burglaries which took place in rented accommodation across the UK between October 2014 and September 2015 totalled in excess of 400,000, which accounts for some £1.1 billion losses annually, and of these 115,000 plus uninsured tenant occupied households have been preyed upon by thieves, racking up the aforementioned £330 million bill.
The problem arises when you learn that home insurance product lines are normally snapped up by freehold and leasehold property owners by force of habit; and typically benefit from dedicated home contents policies being lumped in with wider home insurance plans. Ergo this affords them the platform from which to launch damage claims and claw any future, unpredicted losses back, whilst in contrast rented households tend to be far more vulnerable due to lack of insurance provisions in this specific area.
Over £300 Million Pounds’ Worth of Uninsured Possessions Stolen from Tenant-occupied Properties Annually
The study discovered – by acquiring the views of upwards of 1,000 people currently renting properties in Britain – that nigh on half (48%) fell short of the desired mark when it came to ensuring they’d arranged a home contents insurance policy. In other equally alarming figurative terms this amounted to some 4 million plus renter (out of a projected 8.3 million countrywide) being left without any conceivable cover should their homes be ransacked by thieves.
Of the tenant demographic considered most likely to fail to identify the perils they put themselves in from a financial perspective by not taking out home contents insurance, it’s the 18 – 34-years who fare worst, with 55% admitting to not having organised any household contents cover. Due to this admission, it’s been simultaneously calculated that the accumulative cost associated with domestic burglaries (where insurance claims cannot be pursued) is represented by a sum bordering on a staggering £170 million.
A range of reasons were given for bypassing home contents policies by those guilty parties, including the citing of plans being perceived as ‘too expensive’ (according to 43%)together with proclamations that renters were of the belief that their limited value/quantity of personal belongings didn’t (in their opinion) justify the outlay for protection from the outset (25%). A spokesperson for the insurance policy aggregator said; “This research shows an extremely worrying lack of insurance among renters in the UK, particularly among young people,” going on to add; “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.”