Young renters not taking out home insurance

8th September, 2005

British tenants are risking up to £7.6 billion by not taking out insurance on their possessions, a new report reveals.

Around one in three young people between the ages of 25 and 34, living in rented accommodation, mistakenly believe that their landlords' house insurance will cover their belongings.

The average home contains around £17,500 worth of uninsured goods such as iPods, plasma screen TVs and laptops, the value of which will be lost if burgled, unless tenants take out tenants home insurance.

According to the Direct Line Home Insurance survey, around 40 per cent of young people are trying to cut corners and save money by refraining form taking out a home insurance policy.

'It is a popular misconception that a landlord's policy will provide cover for tenants in the event their possessions are damaged or stolen,' said Andrew Lowe, head of home insurance at Direct Line.

'Most don't which means many renters and new graduates in particular are potentially exposing themselves to unnecessary economic hardship and expense for the sake of a few pounds a month'.

 

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