At Andrew Lees, we aim to bring landlords and tenants together. There are many issues to consider, but the matter of contents insurance is something landlords should think about.
A survey of 1,000 tenants suggests that only around half have contents insurance.
Nationwide have carried out a study of 1,000 tenants, and it found only 52% of tenants have contents insurance. The average content covered by insurance in a rental property amounts to £25,126.
Nationwide claims that the 48% of respondents who don’t carry any content insurance cover equates to 2.13 million households.
Content insurance is not the landlord’s responsibility
Worryingly, close to one-fifth of tenants believe it is the landlord’s responsibility to arrange contents insurance. Also, other tenants decide against paying for content insurance as a way of minimising their monthly expenses.
Nationwide has highlighted the issue that having no home insurance cover could result in tenants being in breach of their tenancy agreement. The study found one third of tenants didn’t know if content insurance was required as part of their tenancy agreement.
Many landlords demand proof of content insurance
39% of tenants have been required to arrange contents insurance, and more than two-thirds of landlords have asked to see proof of content insurance before they signed a tenancy agreement.
Examples of items covered by content insurance include:
Any personal furnishings in the property, i.e. furniture
Clothes and jewellery
Electrical equipment, i.e. TVs, Blu-ray players, games consoles, speakers, stereos
Mobile phones – as standard, our contents cover provides up to £300 per claim for mobile phones (excluding accidental damage. However, this is included if you take out the Accidental Damage extension)
Soft furnishings, i.e. bedding and cushions
Valuables*, including but not limited to: jewellery, clocks, collector’s items
Reasons tenants should hold content insurance include:
If your personal possessions are lost or damaged, having insurance in place means they can be replaced quickly
If your possessions are accidentally damaged, you can feel confident about replacing them
With a tenant’s liability insurance element in your cover, you can get support in paying for any damage in your property
Darren Black, head of general insurance at Nationwide Building Society, says: “It’s concerning that many renters don’t have contents insurance and are living under the mistaken belief that their landlord has cover in place to protect their belongings if they are lost, stolen or damaged. They could also be putting their tenancy at risk as many landlords stipulate that they must have cover in place as part of their tenancy agreement. When finances are tight, insurance can seem like an unnecessary expense, but without it you could end up losing everything you own.”
As an experienced letting agent serving the Bridgwater community, and many of the surrounding areas, we are here to help. We promise to stay in touch with the latest technology, helping our clients to achieve more, and we aim to support the local community as best we can. If there is anything, we can assist you with; please contact Andrew Lees Lettings today.