Warning issued to millions of renters after dad forced to fork out £600
Mustafa moved into a rental home with his family
Almost half of renters in the UK (49%) do not have a contents insurance policy, according to new research.
Contents insurance can help cover your belongings if there was a burglary, flood or fire in your home. The type of cover you can get, and exactly what items or appliances it covers, can vary widely – so it is always best to read the small print to know exactly what you’re covered for if things go wrong.
One dad who didn’t have contents insurance had to fork out £600 after the induction hob in his rented apartment became damaged. Mustafa, 43, a human resources manager who lives in Tower Hamlets, said: “I had moved to the UK from India and rented an apartment for me, my spouse and three-year-old child. While renting the agent had told us about the various inclusions in the rent and one of the items was insurance.
“Being new to the UK, I was not aware of different types of home insurance and as it transpired, I realised that the landlord had building insurance which did not cover the contents. We had invited some friends over a luncheon on a Saturday and while cooking the induction hob cracked quite badly though the centre and was emitting some sparks and a bit of smoke which scared us quite a bit.
“We were then informed that this looked like own damage and hence we would have to pay for it. We ended up paying over £600 covering the hob, both the visits of the maintenance person (the initial one and the one to fix the new hob) and the whole process took over eight days which meant we were buying takeaway or microwaving freezer food adding to our expenses further.”
Some white goods and household appliances are covered by content insurance or separate home appliance policies, but again you need to read the terms and conditions to be sure. Contents policies may also include tenants’ liability cover which offers financial protection if you accidentally damage anything that belongs to your landlord. Whether accidental damage is also covered is all dependent on the type of cover you’ve taken out.
New research from Compare the Market found the main reason renters don’t have contents insurance is to save money (30%) while other reasons include not being able to afford the insurance (28%) or not deeming their contents valuable enough to need insurance (20%).
Of those with a contents insurance policy, almost half of renters (41%) have it for their peace of mind or they have specific valuable items that they want to insure (21%). More than one in four (27%) bought contents insurance because a friend or family member recommended it.
Helen Phipps, Home Insurance Expert at Compare the Market, said: “It’s encouraging that most renters recognise the importance of contents insurance. However, due to expensive living costs, many are trying to save money by not taking a policy out. For people in a financial position to do so, purchasing this insurance could help you avoid the substantial cost of replacing possessions.“
She added: “We’d encourage renters to compare different levels of cover and prices before purchasing a policy. It’s also a good idea to encourage any friends or family members who rent to consider looking for contents cover to ensure they have protection for their possessions.”