Home insurance Updated:
Renting a home before buying one is almost a rite of passage, with people often confined to the rental market while they save up for their all-important first home. But what if that milestone is never reached? It's an increasingly probable situation, with research from Saga Home Insurance revealing a surge in the number of people over 50 living in rented accommodation – and they may not always be going about it in the right way.
The figures show that a third of over-50s now live in rented accommodation, and it's a figure that's been steadily rising over the last five years. Indeed, in 2011 just 26% of people aged 50+ rented their home, and much of it appears to be linked with with a change in family circumstances – the report noted that a growing number of over-50s are getting divorced, and therefore need to make their way back onto the housing ladder via the private rented sector.
But whatever the reason, the fact is clear – more people are renting into later life, but it seems that wisdom doesn't always come with age, as worryingly few of those renters have suitable insurance.
The figures went on to reveal that those aged 50+ in rented accommodation typically have around £20,000 worth of contents in their home, but despite this, 59% of them don't have home insurance. This could leave them facing hefty bills should anything happen with their home, as although the landlord will have suitable buildings cover, this won't protect renters' belongings.
Roger Ramsden, chief executive of Saga Services, said it was "concerning" that so many renters don't have suitable insurance. "While the landlord has responsibility for repairing the building should anything happen, they are not responsible for replacing valued possessions should they, for example, be damaged by fire or even a significant water leak," he explained.
And that's just for starters: "Without insurance, it is not just people's own possessions they would have to foot the bill for if they were damaged," continued Roger. "Any fixtures and fittings or other items tenants are listed as responsible for in the inventory agreed with the landlord will have to be replaced if they are damaged by tenants, which could add up to a significant sum."
So doesn't it make sense to invest in suitable insurance? No matter how old or young you may be, keeping your possessions protected is vital, so make sure to invest in home insurance for your rental property and then you can be confident that you're covered for every eventuality.
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