Uninsured renters could be putting their lifestyle and possessions at risk

Many people renting their home could be putting their lifestyle and possessions at risk by not being insured for unexpected events.

A study from Aviva finds that the vast majority of these UK households do not have protection - life insurance, critical-illness cover or income protection.

This type of insurance provides financial support to an individual and their families if an income is lost through serious illness, injury or death.

Survey results

The survey from the financial services company reveals just one in five renting households has life insurance, compared to three out of five households with a mortgage.

This suggests almost 8million renting households could be without life cover.

And just 3% of renting households have critical-illness cover or income protection.

Figures from the Office of National Statistics show that the number of households in the private rented sector in the UK rose from 2.8million in 2007 to 4.5million in 2017.

Aviva adds that this rental trend could be set to continue, with many residents convinced that they will never become homeowners.

Almost half of renters say they would only be able to get on the property ladder if they inherited a home or money to buy one.

Nearly two out of five renters expect renting will become the most common type of accommodation for future generations.

The research also found that just two out of five households in rented accommodation have home contents cover. This compares to nine out of 10 of homeowners with a mortgage. 

Analysis

Paul Brencher, UK health and protection director for Aviva, said: "More and more households are living in rented accommodation, as house prices continue to be out of reach for many.

"There are a number of benefits to renting - it provides flexibility and can allow people to have their own space sooner than if they were saving to get on the property ladder.

"However, renters have the same need to be able to pay for their housing as homeowners. The risk of an unexpected loss of income due to ill health, and the potential impacts for families, are the same for renters and homeowners.

"Our research suggests that many renters could be leaving themselves exposed because they don't have protection insurance or cover for their possessions.

"Buying a home is often a trigger for purchasing life and contents insurance, so it's important that people don't miss this step, simply because they are renting.

"Whether buying or renting, we'd urge people to consider how they can protect their incomes and possessions, just in case the unexpected happens."

Speak to an expert

At Aberdein Considine, we can help you protect yourself from the unexpected, giving you financial peace of mind.

To speak a member of our team about your circumstances, click here.