Young renters gamble £7.6 Billion on home contents

Young renters are risking £7.6 billion1 worth of personal possessions by failing to properly secure their homes and belongings according to new research from Direct Line Home Insurance. 

The research shows that one in three (33 per cent) of 25-34 year olds rent their homes, each containing £17,5002 of uninsured items including iPods, laptops, PCs and flat screen TVs.

With hefty house prices restricting entry onto the housing ladder, 39 per cent of young renters fall into this ‘risky renter’ category, opting to forgo insurance cover to save money.

Another key reason for this ‘insurance laissez-faire’ is apathy, with one in 10 willing to risk theft, or loss of their possessions by house fire. One in 12 (8 per cent) wrongly assumes they are covered by their landlord’s policy.

However, Direct Line warns that the risk of burglary is greater than ever for young renters as university debts3 often dictate the areas in which they can afford to live and the level of security available.

One in five expects to be burgled in the next couple of years, with 21 per cent blaming insufficient security such as alarms and locks, and 26 per cent their insalubrious neighbourhoods, for the increased risk of theft.

Andrew Lowe, Head of Home Insurance, Direct Line, comments:

“It is a popular misconception that a landlord’s policy will provide cover for tenants in the event that their possessions are damaged or stolen."

“Most don’t, which means that many renters, and new graduates inparticular, are potentially exposing themselves to unnecessary economic hardship and expense for the sake a few pounds a month."

“Insurance cover will not necessarily be expensive, and in the event of a burglary, will almost certainly be more cost effective for new renters than having to replace lost or stolen goods themselves.”

For further information please telephone 0845 246 0355 or buy online at www.directline.com
-ends-
Simon Ziviani / Direct Line Press Office
Tel: 0845 878 2270 / simon.ziviani@directline.com

Mark Lowe /Band & Brown Communications
Tel: 020 7419 7341/ mark@bbpr.com
Notes to editor
Research –
The research was carried out online between 19th October 2004 to 1st November 2004 .  Tickbox interviewed a total of 4,338 UK adults aged 18 and above. 
1. UK population aged between 25-34 is 3,400,800. 33 per cent of the population rent their home = 1,122,264. 39 per cent do not have home contents insurance = 437,682. Average value of possessions = £17,500 x 437,682 = £7,659,435,000.

2. Direct Line research shows that typical rented accommodation has an average of £17,500 worth of home contents.

3. Source: Department for Education and Skills (DfES).