Renters struggle under financial pressure with no income protection

Renters struggle under financial pressure with no income protection

0:03 AM, 2nd August 2024, About 6 days ago 4

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More than 11.6 million renters risk losing their homes if they become ill, injured, or are made redundant, according to new data.

Research by life insurance companies LifeSearch and Canopy reveals that 74% of renters don’t have income protection insurance, which helps cover expenses when they can’t work.

Only 8% of renters reported having an insurance policy designed to replace their income.

Struggle to pay rent and bills

According to the report, nearly half (47%) of renters struggle to pay their rent and bills.

When asked if they would receive their full salary when being unable to work due to illness or injury, just over a third of renters (36%) said their employer would do this for more than three months.

A further 16% said their employer wouldn’t pay them anything, while 10% who are self-employed don’t receive anything. More than a third (35%) said they did not know how long they would be paid their full salary for.

Safety net for renters and landlords

Chris Hutchinson, chief executive officer, at Canopy says income protection insurance is useful for tenants and landlords.

He said: “The findings of our latest research underscore what we see as the next critical vulnerability within the UK rental sector.

“With rents at an all-time high and financial pressures mounting, the absence of income protection for such a significant portion of the population is alarming. Income protection is not just a safety net for renters that enables them to keep a roof over their heads, it’s also a vital assurance for landlords, ensuring consistent rental income even in times of tenant hardship.

“As we navigate uncertain economic times, it’s imperative for both renters and landlords to recognise the importance of and support robust financial safeguards.”

Renters don’t have insurance for their belongings

This news follows research by Co-Op Insurance showing that 30% of renters don’t have insurance for their belongings, and another 10% aren’t sure if they do.

This is despite 20% of renters estimating their valuables are worth at least £5,000.


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GlanACC

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8:01 AM, 3rd August 2024, About 4 days ago

Yes, amazing how many renters think the landlord insures their belongings.

I make a point of telling my tenants I don't !

Cider Drinker

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9:05 AM, 3rd August 2024, About 4 days ago

So, Life Insurance companies think we should have more life insurance.

What a surprise.

Zen

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12:34 PM, 3rd August 2024, About 4 days ago

It's the same for home owners, can't pay your mortgage and it gets repossessed.

We're all in the same boat, even if you have no mortgage you still have to pay council tax, gas, electric, water, internet, tv licence, insurance, transport, food and clothing. If something major bad happens in your life we're all in the same boat.

You can take out as much insurance as you want but it'll be time limited and will only payout for a relatively short time. If that time isn't long enough for you to recover your financial position then after you've sold all your assets and have less than 16k in the bank, then benefits and poor housing is the only option left.

G Master

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7:16 AM, 4th August 2024, About 3 days ago

Labour Party better start building more houses because very soon, the landlords too would be looking for somewhere to be housed.

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