Insurance News Tenants Are Gambling Millions Says Direct Line
09 September 2005
A third of young tenants are gambling £7.6 billion a year by not taking out home insurance, according to a survey.
The survey by insurance company Direct Line found that a third of 25 to 34-year-olds rent their homes – and each contains £17,500 of expensive, uninsured items including iPods and laptops.
Andrew Lowe, head of home insurance at Direct Line, said: “It is a popular misconception a landlord’s policy will provide cover for tenants in the event their possessions are damaged or stolen.
“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 a few pounds a month.”
According to Direct Line, most young people either wrongly think they are covered by their landlords insurance, or skimp on insurance to save money. This is in spite of the fact that the areas where most young people can afford to live have poor security and are open to burglary.
The insurance company also said that the claim insurance is expensive is misconstrued and that most tenants can insure their property for a few pounds a month.
NatWest launched its 2004 student insurance policy last year to cover students’ possessions when it recognised that more and more students were taking expensive items away to university.