This data from Co-op Insurance shows how cash poor many renters are after paying rent, utilities, plus food etc each month. There often isn’t much left for anything else once bills are paid. Here’s the word;

New research reveals the potentially large financial risk facing UK renters, as almost 1 in 3 admit to not having any form of insurance for their valuables, while a further 1 in 10 said they simply “didn’t know” when asked if they had cover.

The survey of UK renters, conducted by Co-op Insurance, highlights the potential financial ‘black hole’ tenants face across the nation, as one fifth of those asked estimated the total value of their possessions to be between £5K and upwards of £10K. However, worryingly, only 6% of those surveyed said they could replace this same amount ‘out of pocket’.

And this disparity is further amplified at a time when many renters face the added expense of increasing rental costs, with recent ONS figures highlighting average UK private rents increased by 8.7% in the 12 months to May 2024.

When it comes to potential common risks experienced by renters, such as fire, weather damage or theft, the latest data reveals the top 5 claimed-for items, with televisions topping the list.

Top 5 items claimed for:

With the data showing potentially high price point electronics seemingly most at risk, while other expensive items such as jewellery and bikes round out the top 5, renters could face paying out for costly replacements should they not have sufficient protection.

HOME OWNERSHIP IS BEING RESERVED FOR THE RICH

As part of the research, which comes at a time when renter numbers in England alone reaches 8.6 million – the private sector equating for 53% of this – almost 1 in 3 (30%) UK renters, when asked, said they expect to remain in rented accommodation for at least another 5 years, while even more startlingly, over 1 in 10 (11%) said they expect to remain doing so “forever”.

And with recent data showing the average age, as of 2023, for first-time homebuyers to be 32 years old, the research suggests a trend of delayed life milestones – such as getting on the property ladder – having an impact on UK renters.

Andrew Nevitt, Head of Co-op Renter’s Insurance, said: “As our research shows, despite the large numbers of people in rented accommodation across the UK, many either simply don’t have adequate protection for their belongings in the first instance or are unsure if they do and what is covered.

“Whether you are short term renting or for longer, it’s important to be aware that whilst your landlord may have their own insurance policy, this generally will not extend to covering the tenant’s personal belongings.

VULNERABLE VALUABLES

“For peace of mind in knowing that your valuables are covered should anything happen, a good renter’s insurance policy can provide just that, as it’s basically designed to protect those things you would take with you when you move, whilst also offering flexibility that allows you to only pay for the months you need it, should you be planning to move, for example.”

Co-op insurance has launched a new renters insurance product to provide better value and protection for renters. The product, created specifically for tenants rather than homeowners, is designed to protect personal belongings instead of the property.

With accidental damage cover included as standard, alongside Tenants’ Liability Insurance, which covers those things belonging to the landlord that a tenancy agreement says the renter is liable for, the product can also be tailored to suit the tenant’s needs with optional extras, such as cover for garden items, legal cover or damage caused by pets.

For more information visit https://www.coop.co.uk/insurance/home-insurance/renters-insurance

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