Recent research by the Financial Inclusion Commission (FIC) has revealed some concerning figures regarding UK residents’ earnings and their insurance-buying habits.
According to the FIC’s recent survey, 60% of those earning below £15,000 do not have Contents Insurance coverage across the UK. More startling is that 16 million people – 35% of the UK – do not have any contents insurance at all.
That represents an incredible risk should an accident ever occur or the worst happens. So, why do people feel like they don’t need insurance? Factors throughout the survey suggest that being younger, having low earnings and living in a rented property are all key factors for them not investing in contents insurance. At the same time, some feel they simply can’t afford the premiums.
More alarming is the concession that older people don’t have contents and other forms of insurance because of the insurance industry’s move online. Terminology provides something of a barrier, too, with 19% of adults saying that they find information provided by insurers difficult to understand.
The consequences of not having contents insurance can be dire though, with there being a very real possibility of individuals and families losing significant belongings should an accident ever occur. This especially is also underlined in the FIC’s report, with few of those earning under £15,000 conceding that they wouldn’t likely be able to afford replacements for lost items anyway. So, what can be done to help them?
Work with an expert General Insurance Adviser to protect your interests
There are many things that can be done to help people without contents insurance protect their interests. One of them is by navigating the information barrier and helping people improve their understand of the benefits offered by Contents Insurance, and the safety net it can provide in trying circumstances.
That’s something that the industry needs to deal with in a better way, especially when it comes to changing attitudes surrounding contents insurance. Research suggests that two-thirds of renters aged between 18-30 (those in the millennial bracket) would give up contents insurance, believing the spend to be ‘pointless’ as they don’t own their own homes.
They also believe that they’ll never need contents insurance as they deem their homes to be safe. Contents would be the first of the financial outgoings this group would cancel, ahead of Netflix and gym subscriptions.
Since moving into a rented property, only 38% of respondents said they had taken out contents insurance to protect their belongings. 12% said they simply hadn’t gotten around to taking a policy out yet, while 16% believed that a policy was beyond their reach financially.
We believe that they just haven’t found the right provider for their needs. Oportfolio is able to advise people from any age and background with bespoke solutions for them, helping you to decide which risks to insure against and find the right policy tailored to your individual wants and needs.
Oportfolio will be with you every step of the way when you’re looking to insure your property or belongings. Contact our Expert General Insurance Advisor Sarah-Jane Seamark today for more information.
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