Why Contents Insurance is Essential for Low Income Homes

low income insuranceAs the economy begins to recover slowly families across the country are still facing tough economic times. Tightening the household purse strings means getting the most out of your finances and that means looking after your assets.

The government has recognised how important it is for homeowners and tenants living on low incomes to have access to Contents Insurance and recently held an All Party Parliamentary Group to discuss ways of helping the most financially vulnerable.

An estimated one in five households don’t have any Contents Insurance, and it won’t surprise you to learn that a disproportionate number are on low incomes. Most are tenants living in city centres where crime levels are higher and the need for insurance is greater.

Not only are low income households more likely to be burgled, but they are statistically at greater risk of being flooded and are much more likely to be victims of arson. So with an increased likelihood of suffering loss, why are low income homes less likely to be insured?

Doubtless financial pressures play a part, but there’s also plenty of evidence to suggest that a significant number of householders think they won’t ever need to make a claim, they are already covered by their landlord, or their possessions aren’t worth insuring.

However, a survey of low-income families found that one in six had suffered loss or damage to their home contents as a result of fire, flood or theft in the previous three years. So clearly there is a need for contents insurance and just crossing your fingers and ‘hoping for the best’ is seriously short-sighted.

The report also found that over half of the households who had suffered loss were unable to replace their possessions. Householders of all income brackets tend to undervalue their contents, but carefully work your way from room-to-room adding-up the value of everything from clothing to crockery; and you’ll be surprised.

For households on tight budgets replacing day-to-day possessions can put serious strain on other essential financial outgoings. And it’s worth remembering that contents insurance is very rarely provided by landlords.

At Quoteline Direct we welcome the news that the government and the insurance industry are reading from the same page and we will keep a close eye on future proposals. In the meantime if you are a tenant looking for contents insurance we have access to a number of providers offering surprisingly affordable cover. For a quick online quote visit our home insurance page or Tel: 0161 874 8032 to speak with a consultant.

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