Insurance is in danger of being a “forgotten” or missing piece of the jigsaw puzzle when it comes to many people’s part in belonging to the UK’s fundamental financial systems.
This is the conclusion drawn by the Financial Inclusion Commission (FIC) in a report published on the 14th of November.
Evidence for this disconnect between ordinary people and the central role played by insurance in their financial lives is demonstrated by a few stark facts revealed by the FIC:
- 16 million people in the UK (approximately 35% of the population) are without any form of home contents insurance;
- that percentage grows to a significant 60% of the population earning less than £15,000 a year;
- whilst an even more significant 81% of the so-called “generation rent” population have no home contents insurance; and
- few if any of these sectors of the population are likely to be able to draw on any savings if they needed to replace their lost or damaged belongings.
In the light of its findings, the FIC calls for greater access to information about home contents insurance and access to its products, with a particular emphasis on targeting some of the social groups and private sector tenants identified in its report.
Home contents insurance
Here at UKinsuranceNET we are already playing our part in efforts to increase financial inclusion for all social groups – not only when it comes to home contents insurance, but a whole range of insurance products designed for people in every walk of life.
That includes competitively priced, standalone home contents insurance cover so that tenants may insure their belongings against loss or damage, contents insurance combined with building insurance, in policies more suitable for owner occupiers, and landlords’ contents cover for owners of buy to let property.
- For homeowners, our contents insurance starts at just £60 per annum for £20,000 amount of contents cover.
- For tenants looking to insure their contents, our tenants contents insurance starts at just £70 per annum for £20,000 amount of cover.
Home contents insurance is important for any kind of household, but it is also something which needs to adjust and be adapted to a constantly changing world and the changes to your personal circumstances in turn.
Recognising that the environment is constantly changing is a key to financial inclusion and one of the reasons why we recommend that you keep your home contents cover under regular review – the volume or value of your contents may have changed, or you might want to upgrade the level of cover offered, for example.
Reviewing and renewing your home contents insurance
The contents of your home changes over time – you might have bought new and potentially valuable items, whilst others might have reached the end of their useful working life and have been discarded, and inflation alone may have increased the overall value of your belongings.
Since you want to avoid being either underinsured (a common failing with many people when it comes to contents insurance) or over-insured, it may help to make a detailed inventory of the contents of every room before deciding on the total contents insurance to arrange.
You might also want to consider whether cover on a “wear and tear” basis is sufficient or whether you want to upgrade the level of your contents insurance to replacement as new (“new for old”) in the event of loss or damage.