Millions living without contents insurance

Wednesday, December 14, 2005

An astonishing number of low-income families do not have any home insurance, the latest research shows.

Insurance provider Royal & SunAlliance has said that despite the fact that social housing is twice as likely to be burgled as privately owned property, an alarming three million households are not covered by contents insurance.

The provider notes that during the period 1994-2004, the percentage of council house tenants without contents insurance grew by six per cent, from 55 per cent to 61 per cent.

The increase in tenants without the desirable contents cover is a worry, but something Royal & SunAlliance says it is helping to right.

"We are committed to tackling the insurance divide and adapting with-rent insurance to changes in the ownership of social housing," said Dave Greaves, social housing schemes manager at Royal & SunAlliance.

"As a result we've been developing solutions which include helping smaller social landlords set up group schemes, making payments for tenants easier, and keeping premiums as low as possible. These schemes offer security and peace of mind – the impact on people of not having protection can be catastrophic."

The concept of with-rent insurance would make contents insurance more affordable for those who cannot afford it, the report suggests.

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