Contents covered: the role and importance of home contents insurance in low-income households
In the UK, 61% of UK renters in low-income households – 2.5 million people – do not have contents insurance, exposing them to financial distress in the event of a potentially insurable loss. This group also has a higher likelihood of loss and damage resulting from burglary, a fire or a flood; and more than two-thirds say they would not be able to cover a £500 bill without assistance such as credit.
This report presents new analysis of the take up of home contents insurance amongst low-income renters, and identifies barriers that lead to low take-up. WPI Economics commissioned and analysed polling from ComRes for the report, which found that over half of low-income renters associated at least one negative emotion, such as vulnerability, nervousness and insecurity, with not having insurance. The report calls on various stakeholders – from Government to the insurance industry – to find innovative solutions to boost financial resilience in low-income renting households.