New research from online letting agent Upad found that the majority of tenants (61%) do not have any contents insurance, with 40% admitting that they’ve never taken out contents insurance for a property they have lived in.
Worryingly, 19% of tenants said they had no idea what contents insurance was, while, among those who did have contents insurance, 42% didn’t know what it covers or what to do in the event of needing to make a claim.
The Upad study also found that 78% of tenants have belongings that value more than £1,000, while 22% have belongings at home with an overall value of over £5,000.
Landlords, remember that you must have contents insurance in place to protect the items that you provide your tenants.
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The Founder of Upad, James Davis, himself a portfolio landlord, says: “It’s madness that tenants are exposing themselves like this, regardless of whether they’re trying to save money or for some reason think their landlord’s own insurance will keep them covered in the event of loss or damage to their property.
“Tenants are far better served having contents insurance that they don’t need rather than finding out they badly need it at precisely the time when something goes horribly wrong. Remember that even in a fully furnished property, tenants will still have plenty of their own belongings. If tenants are unsure about their level of cover, they should check their insurance policy or with their letting agent or landlord.”
He continues: “For less than £20 a month, and usually for far cheaper than that, it makes sense that tenants should do all they can to ensure they are covered. Contents insurance often covers possessions outside of the home too, meaning many policies allow tenants to cancel their phone or bank insurance, helping them to save money and still be covered.”
Remind your tenants to cover their own possessions when they move in!