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Insurance firm tells landlords to do more to "educate" tenants

An insurance firm says landlords should “educate” their tenants on the apparent need to get increased insurance cover.

Paymentshield claims that a recent YouGov poll, which it commissioned, questioned 1,000 adults and found that 67 per cent of those living in a rented property did not have contents insurance. 

The firm goes on to say “that equates to over nine million renters in the UK living in a home where their possessions are not protected from being lost, stolen or damaged.” 

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This contrasts with 84 per cent of owners, who do have contents insurance in place. 

The company believes there to be multiple reasons behind the low numbers among renters, including tenants underestimating the value of their contents and deeming insurance to be unnecessary or expensive. 

It also feels that the figures demonstrate that the industry isn’t talking adequately enough to tenants about their needs.

“These figures present a stark warning for tenants, landlords and lettings agents, as not having the adequate insurance in place can lead to disastrous financial consequences” says chief executive Rob Evans. 

”Many tenants moving into privately rented or social housing wrongly assume that their landlord’s insurance will cover them for their own belongings. The onus is on the tenant to get the right insurance in place, but the lettings industry also has a duty to help educate incoming tenants and plug the insurance gap”. 

He goes on to say: “When homeowners arrange a mortgage, they typically get holistic financial advice and are required to take out buildings insurance by their lender – adding contents cover is a natural progression. Yet most tenants don’t discuss their protection needs when they enter into a new home, and so many are unaware of the risks they are exposed to or the cover available. 

 

 

“As our research shows, very few are going looking for themselves, resulting in millions of tenants being uninsured”.

And as 25 per cent of those who do have the appropriate insurance apparently worry that it may have too low a level of cover, Evans adds: “Home and flexible working has become the norm for many and is likely to continue beyond the pandemic. Recent research has revealed a sharp rise in accidental damage in these new circumstances, so it is important to review insurance from time to time to ensure that you have appropriate cover”.

Poll: Should landlords be expected to 'educate' tenants on insurance?

PLACE YOUR VOTE BELOW


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    Stay well clear of this sort of nannying. Next thing the tenants will have the right to sue landlords for their property losses so they will need another insurance to protect themselves from tenants who don't know the basic precautions, insurances they need for their life.

  • David Lester

    You can't educate Pork!

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    Mr Lester the Pork has more savvy than you think and so have the Tenants which is why majority don't avail of those policy's. Mr Evans so would like to impose another cost on Tenants that already have their backs to the wall. I think Insurance Companies are more interested in feathering their own nest like many others carving out a living for themselves off LL's & Tenants alike. When I had a potential contents claim some years ago it was never claimed, they sent the forms that were so onerous it was never done so a fat lot of good that was, more grief & hassle than what I would be Claiming.

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    I had a break in a few years ago, didn't claim for damage to the property as it was, as you say, too much hassle and the contractor sent by the insurers wanted £300 to temporarily board up the French Windows with plywood etc. I did it myself for around £30 materials and Everest replaced the glazing unit and lock for around £150 - for a permanent repair!

    However my insurance premium still went up because I had a "claim able incident". I now avoid that company and spend a long time ensuring my insurance premiums are as low as possible, saving hundreds of pounds every year in property and car insurance premiums.

    . Let them make their profits from others' misguided loyalty, as they'll get the minimum possible from me and I certainly would never promote them to tenants.

     
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    I regard insurance as protection against life changing catastrophes, so I would always insure properties, cars etc. and take out travel insurance but I never insure house contents, washing machines, mobiles, gas boilers etc. as I could afford to replace all such items, even if the house burned down.

    I reckon that I have saved around £20000 to £30000 in unnecessary insurance premiums over the years and could replace an entire house contents for much less than the premiums avoided.

    Insurers are only interested in getting more business and landlords should not get involved in any way in promoting their products to tenants.

  • Philip Drake

    Are landlords authorised to provide financial advice?

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    Very good point. If you advise them and something goes wrong - guess who's fault it will be!

     
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