Risk-taking renters lack insurance
Renters are 10 times less likely to insure their contents than homeowners, despite having a higher risk of being burgled, according to new research.
A study commissioned by the Insurance Council of Australia found that 74 per cent of tenants do not insure their possessions, compared with only seven per cent of home owners.
RentCover General Manager, Sharon Fox-Slater, said tenants commonly had a misconception that the landlord’s insurance covered their possessions.
“It’s worth letting tenants know the truth of the situation. You might save them a lot of heart-ache if they’re burgled. With all the gadgets of today, the value of home contents can easily mount up. Affordable cover is available,” she said.
EBM’s TenantCover provides $25,000 of cover for less than the cost of a cup of coffee at around $4 a week.
Sharon recommended tenants create an inventory of their possessions – with photographs – and email it to themselves to help in the event of a claim.
“The other important thing to remember, whether you’re a tenant or not, is that you need to review your sums insured each year as you acquire more possessions,” she said.