Two-thirds (62%) of UK renters risk not being able to replace their possessions if they were damaged or stolen because they do not have contents insurance.
This is against a backdrop of increasing numbers of renters overall. The number of households renting in the UK has risen from 2.8 million in 2007 to 4.5 million in 2017, an increase of 63%, according to the Office of National Statistics.
Young renters are especially at risk, with research from Halifax Home Insurance showing that while 42% of 25-34 year-olds rent their home, three quarters (70%) of this group do not have contents insurance in place.
The biggest turn off for renters is the perceived cost of cover, with 40% identifying this as the major blocker. The next turn off is that people don’t think their possessions are worth enough to insure them (26% of renters).
Halifax has worked with US fintech firm Trov to launch a simple and lower-cost insurance product, Halifax Renters Insurance, which offers:
- Insurance against lower sums - traditional contents insurance policies tend to cover £75,000 - £100,000 as standard but this is more than most renters require. Renters’ Insurance will protect contents up to £10,000.
- Ability for users to insure individual items whenever they want, turning protection on or off at the touch of a button.
- Online access and management throughout, meaning it’s much simpler for customers to take out cover.
- Monthly subscriptions, allowing customers to get cover when they need it without being tied into a contract.
Renters can easily fall into the trap of taking out individual insurance for only their prized possessions, such as a phone and laptop, but not taking out contents insurance as they don’t see the benefit of traditional policies. But when the cost of these individual insurance policies is added up, people can end up spending more on several policies than on a single contents insurance policy which would cover more than just those items.Working with Trov, we’re taking the hassle out of home insurance for renters, giving them peace of mind that their belongings are covered should the worst happen.
Jeremy Ward, Head of Home Insurance at Halifax