A report this month by the Government’s Financial Inclusion Commission has unveiled that 35% of people don’t have contents insurance. The report found that many lower income families tend to not get home insurance at all. 60% of those with an annual income of £15000 do not insurer their possessions and the majority would not be able to replace their items with savings.
Another separate study by the Financial Conduct Authority found that 81% of ‘Generation Rent’ don’t have contents insurance. The significant drop in contents insurance has also been blamed on a variety of reasons. The young struggle to manage their finances, and 19% of adults are unable to understand the information provided by insurers. The widespread move of the insurance industry online has marginalised those who are less technologically adept.
“The findings in this report are a reminder of the challenge we face in furthering financial inclusion,” says Sir Sherard Cowper-Coles, Chair of the FIC. He goes on to state “For many, insurance is an unaffordable or unobtainable safety net. Government must push for a strategy that widens access to quality cover, so that everyone has immediate access to a capital buffer in case of loss.”
We believe at Sharrocks that contents insurance should be one of the most accessible, versatile and affordable policies available to consumers. We regularly offer contents insurance policies for £50.00 for the year (less than £5.00 a month) covering possessions in the home from a variety of incidents, including fire, theft, storm and flood damage.
Discuss your home insurance requirements with one of our friendly team or submit your details online and we will do the rest, checking the insurance market to find the best deal for you this year and next.