More than a third of UK households have no contents insurance, finds a report by the FIC
Over a third (35%) of people in the UK have no contents insurance. Renters, people on low incomes, the young, older people and those in vulnerable circumstances are more likely to have no cover.
Few people without cover could afford to replace their belongings in the event of an incident, a report by the Financial Inclusion Commission (FIC) called Access to Insurance has found. Four fifths (81%) of ‘generation rent’ have no contents cover at all.
The most likely reasons for not purchasing cover include lack of affordability and information about insurance being too complex for people to digest.
The report recommends four steps to combat the issue.
It suggests that contents insurance should be more accessible for social and private tenants.
Groups who the market overlooks, or does not serve well, should be helped with access to insurance.
The report recommends that the profile and understanding of household insurance needs to be raised.
It also suggests that there should be a national strategy formed by the Government, regulators, insurers and others.
Commenting on the research, FIC chair Sir Sherard Cowper-Coles said: “The findings in this report are a reminder of the challenge we face in furthering financial inclusion. For many, insurance is an unaffordable or unobtainable safety net. Government must push for a strategy that widens access to quality cover, so that everyone has immediate access to a capital buffer in case of loss.”