Research reveal tenants think wrongly their contents are covered by landlord insurance

Overall 43% do not have contents insurance with 29% believing that the … covers them, according to a study from Direct Line Home Insurance.

Almost a third of tenants in the private rented sector mistakenly think that their possessions are covered by their landlord’s insurance, new research has found.

Overall 43% do not have contents insurance with 29% believing that the buildings insurance policy taken out by landlords covers them, according to a study from Direct Line Home Insurance.

The main reason behind this is confusion amongst renters is that they believe they are covered by another insurance policy with 36% thinking that is the case.

And while 15% of tenants have had contents insurance in the past, some 28% have never had an insurance policy to cover their possessions and half of those aged 18 to 34 have not insured their contents.

One tenant, Nick Andrews from Willesden Junction, London, said that during four years renting while at university he did not think about contents insurance and didn’t understand the consequences that could come about as a result of being inadequately insured.

‘When I came to rent a home outside of further education, I was under the impression that my contents would be covered under the landlords insurance. Similarly, my partner assumed she would be covered under her parent’s home insurance policy, which is the case for university students but not for graduates,’ he explained.

They also realised that, despite the individual values of our contents not amounting to much, the total sum of the items added up to over £6,000. This total included things like beds, furniture, mobile phones, televisions, tech and clothes. ‘Following the penny drop moment, we decided it was in our best interest to get contents cover as we wouldn’t be able to afford to pay to replace all our items at once if we needed to,’ he added.

The highest value items that renters would need to replace are furniture, with the average household in the UK owning furniture worth around £1,621, followed by electronic at £1,342 and kitchen items at £919.

‘This research shows the true scale of the lack of insurance amongst the rental market in the UK, with over seven million renters leaving themselves at risk of losing their personal belongings and facing a huge bill at what is already an incredibly stressful time,’ said Jeremy Bristow, head of home insurance at Direct Line.

‘No matter whether you are living in rented accommodation or if you own your property, it is important to ensure that you have the appropriate home contents and personal possessions cover in place, so that you are not left out of pocket if the worst does happen,’ he added.

Related Posts:

  • No Related Posts

Insurance warning for renters

Close to £50bn of home contents across the UK are not insured, according to research carried out by Direct Line Home insurance. This equates to the …

Close to £50bn of home contents across the UK are not insured, according to research carried out by Direct Line Home insurance. This equates to the belongings of 17 million people who live in rented accommodated across the UK.

The figures among 18-34-year old renters were particularly staggering, with half admitting that they do not currently insure their contents. In comparison, one third of people aged 55 and over had taken out contents insurance.

Direct Line found that one of the main reasons that renters do not have home insurance is because they believe their contents are covered by another insurance policy. The insurer found that this was the case for 36% of renters.

For example, some incorrectly assumed they were covered by an insurance policy taken out by their landlord, such as buildings insurance policy, or their parents’ home insurance policy.

This means that the belongings of many renters are at risk in the event of a fire, flood or burglary. Direct Line notes that the bill to replace belongings on average totals £7,000.

How different types of insurance work

For those who are confused by the different types of insurance that are available. Here’s Direct Line’s quick rundown of how each type of insurance works:

Contents insurance

Simply put, if you turn your house upside down, everything that would fall out would be considered as your home contents and covered under a home contents insurance policy. Anything that would remain in your home would then be considered structural and would be covered by your home buildings insurance.

Personal possessions cover

This is an optional extra when purchasing home insurance and provides cover for your family’s belongings when they are away from home and for up to 60 days a year whilst they are abroad.

Accidental damage cover

This is another optional extra when purchasing home insurance and provides cover for unexpected accidents which happen in your home, including spillages on the carpet, breakages around the house or accidentally drilling through hidden pipes.

Family legal protection

This optional extra when purchasing home insurance provides up to £100,000 cover for claims including contract disputes, personal injury and motoring prosecution.

Related Posts:

  • No Related Posts

Israeli-Founded InsurTech Startup Lemonade Raises $300M, With Valuation at Reported $2B

Israeli-founded, NY-based insurance startup Lemonade has raised $300 million in a Series D funding round led by Japan’s Softbank Group …

Israeli-founded, NY-based insurance startup Lemonade has raised $300 million in a Series D funding round led by Japan’s Softbank Group Corporation, with participation from Allianz, General Catalyst, GV, OurCrowd and Thrive Capital. Forbes reported that a source said the investment now brings Lemonade’s value to over $2 billion

Lemonade uses behavioral economics, artificial intelligence and chatbots to deliver renters and homeowners insurance policies and handle claims quickly for users in nearly two dozen states across the US. It offers renters insurance starting at $5 per month, and homeowners insurance starting at $25 per month.

Get our weekly newsletter directly in your inbox!

Sign up

The latest funding round brings total financing for Lemonade to $480 million.

The investment is set to help Lemonade expand beyond the US, with sights set on Europe where it operates its local HQ in Amsterdam.

The company was founded in 2015 by veteran Israeli tech entrepreneurs CEO Daniel Schreiber, former president of Powermat, and president and CTO Shai Winniger, a co-founder of Fiverr.com.

Related Posts:

  • No Related Posts

Lemonade Raises $300M in Series D Funding

The round was led by SoftBank Group, with participation from Allianz, General Catalyst, GV (formerly known as Google Ventures), OurCrowd, and …
Daniel Schreiber
Daniel Schreiber

Lemonade, a NYC-based insurance company powered by artificial intelligence and behavioral economics, raised $300m in Series D funding.

The round was led by SoftBank Group, with participation from Allianz, General Catalyst, GV (formerly known as Google Ventures), OurCrowd, and Thrive Capital.

The transaction – which is subject to customary closing conditions including regulatory approvals – is targeted to close in Q2 2019.

The company plans to use the funds to accelerate its US and European expansion in 2019, and explore new product lines.

Founded by tech veterans Daniel Schreiber and Shai Wininger, Lemonade is licensed as a full-stack property and casualty insurance carrier. The company began offering homeowners and renters insurance in New York in late 2016, and is now available for most of the US population.

In addition to digitizing the entire insurance process, Lemonade reduces costs and bureaucracy through giving. As a Certified B-Corp, it takes a fixed percentage as a flat fee, eliminating the conflict between paying claims and making a profit, and donates a portion of unclaimed premium dollars to nonprofits during its annual ‘Giveback.’

FinSMEs

11/04/2019

Related Posts:

  • No Related Posts

Insurtech BriteCo Raises $2 Million Seed Round, Targets Fine Jewelry Market

Insurtech BriteCo has announced a $2 million seed round led by Brian Spaly, the founder of Trunk Club, and Jeff Taylor, the former chairman and CEO …

Insurtech BriteCo has announced a $2 million seed round led by Brian Spaly, the founder of Trunk Club, and Jeff Taylor, the former chairman and CEO at Cole Taylor Bank. BriteCo is targeting the fine jewelry and watch market to provide insurance within minutes of purchase.

BriteCo explains that homeowners and renters insurance policies usually don’t cover the full value of fine jewelry or watches. It’s a fact that making a claim against a homeowners policy can bring premium increases or even canceled coverage. BriteCo offers a zero-deductible policy with coverage up to 125 percent of insurance replacement value.

BriteCo provides verified appraisals and immediate replacement coverage by insurance carrier HDI global. BriteCo’s coverage has no deductible, automatically updates protection each year using price analytics and predictive models, and claims a more streamlined claims experience.

BriteCo states that its cloud-based Appraisal Management System (AMS) is faster and more accurate than the jewelry industry’s traditional manual processes.

BriteCo provides partner jewelers with a new source of revenue while improving their in-store customer experience. Once an appraisal is completed customers receive an immediate insurance quote via email or text, which allows them to purchase coverage within minutes, even before they leave the store.

Dustin Lemick, BriteCo founder and CEO, says that as a third-generation jeweler, my family and I have a long history in the business:

“But the jewelry buyer is changing rapidly. Millennials now represent the largest jewelry buying demographic, and their expectations are different from those of prior generations. BriteCo helps jewelers by providing them with the optimal blend of online convenience and personal attention.”

Investor Jeff Taylor says the company has accomplished quite a lot in a short period of time:

“Getting BriteCo licensed in virtually every state before officially launching is a testament to their hard work and the professionalism with which they’re approaching this big challenge. I’m excited to be a part of their push to modernize the jewelry insurance and appraisal process and to help millions of people across the US protect their most valuable possessions.”

Related Posts:

  • No Related Posts