Almost half of renters in the UK don’t have contents insurance, and of those two-fifths say it’s to save money.
Energy bills, fuel and food costs have all risen and in a bid to reduce, 44% of renters admitted they did not have contents insurance in place for personal property to help them to save money.
Comparison site, comparethemarket.com, said this lack of protection exposes them to significant costs to replace or repair stolen, lost or damaged goods.
A third (32%) of tenants say they are less inclined to take out home inventory insurance due to the rising cost of living.
However, 54% of renters who have had items lost, damaged or stolen said their possessions were worth more than £200.
For one in five renters (22%) that figure rises to more than £500 worth of items. As the cost of living rises, paying hundreds of pounds to replace these belongings could put tenants, who have not taken out home inventory insurance, under significant financial pressure, the comparison site has warned.
Home inventory insurance differs from homeowner’s home insurance, which covers the building itself, necessary repairs, as well as the owner’s contents.
Nearly a fifth (18%) of renters don’t buy inventory insurance because they mistakenly believe that their landlord’s home insurance policy covers their personal possessions, such as cellphones, tablets, wallets, and their bike.
But comparethemarket reiterated that renters are responsible for having their own contents insurance policy for personal items.
Alex Hasty, director of comparethemarket.com, said: “The current cost of living crisis is straining the finances of many people. As a result, many renters are having to cut back not just on luxuries, such as dining out, but also on essential expenses, such as contents insurance, to help ease the burden of soaring living costs.
“As household bills and inflation continue to rise, we understand that people will be looking to cut back on their expenses during this difficult time. However, not having coverage on personal property in your rental property could be costly, if these items are unfortunately misplaced, stolen or damaged.
Hasty added that to find a good deal on home contents insurance, people should shop online.
“We also suggest that tenants compare policies on existing bills, such as car insurance, to ease wider financial pressures. Households could save an average of £150 if they switched to the cheapest car and home insurers,” Hasty said.