Tenants and poor people most likely not to have contents insurance
The government has been urged to intervene on contents insurance as it emerged that 16 million people have no cover.
A report from the Financial Inclusion Commission found 16 million people without the cover - mainly tenants and people on low incomes.
The report concludes that many people struggled to find affordable cover and the masses did not trust the insurance industry.
Around 60% of households on less than £15,00 have no cover.
Commission chair Sir Sherard Cowper-Coles urged the government to come up with a strategy to help.
The report recommends making contents mandatory with rent, automatically signing up all social housing tenants to the the cover with an opt out, and finally, launching an education programme to help people understand insurance.
He 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.”
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