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If new research from Aviva is anything to go by, it looks like a good percentage of renting households in the UK are not protected against income loss resulting from serious illness, injury, or death.
A survey conducted by YouGov on behalf of Aviva shows that just one in five households in rented accommodation has life insurance, compared to three out of five of their home-owning counterparts with a mortgage.
Meanwhile the poll also found that only 3% of renting households have critical illness cover or income protection. In addition, a mere two out of five households in rental properties have home contents cover to protect their belongings.
“More and more households are living in rented accommodation, as house prices continue to be out of reach for many,” noted Paul Brencher, UK health and protection director for Aviva. “There are a number of benefits to renting – it provides flexibility and can allow people to have their own space sooner than if they were saving to get on the property ladder.
“However, renters have the same need to be able to pay for their housing as homeowners. The risk of an unexpected loss of income due to ill health, and the potential impacts for families, are the same for renters and homeowners.”
Brencher said the study suggests that many renters could be leaving themselves exposed due to them not having protection insurance or coverage for their possessions.
“Buying a home is often a trigger for purchasing life and contents insurance, so it’s important that people don’t miss this step, simply because they are renting,” he stressed. “Whether buying or renting, we’d urge people to consider how they can protect their incomes and possessions, just in case the unexpected happens.”
