Renters Shun Contents Insurance
Illawarra Mercury
Tuesday January 29, 2002
Renters are taking big risks by not adequately insuring their valuables against storm, fire and theft according to a national survey.
The NRMA Insurance survey revealed that renters were more than five times less likely to have home contents insurance than home owners.
Research showed that almost 40 per cent of Australian renters did not insure their contents.
``The survey shows that people are taking a `she'll be right' attitude to protecting their valuables and are taking a big financial risk," NRMA Insurance home portfolio manager Natalie Atkins said.
``NRMA Insurance claims experience shows renting a home does not decrease the likelihood of theft or fire damage.
``In fact renters are more likely to lodge a claim for theft than residents who own a home."
Ms Atkins said some of the reasons provided for not taking out home insurance included that people hadn't got around to it, hadn't thought about it or just didn't think their contents were worth insuring.
Northern suburbs renter Michael (who wished to remain anonymous), believes paying for home contents insurance is just not cost effective.
Michael has rented homes with his wife and two kids for at least 15 years, both on the South Coast and in Sydney's eastern suburbs.
``Like most insurances, I think the cost of home contents insurance is just ridiculous," he said. ``We're on an income of around $50,000-$60,000 so we don't have a lot of money for luxury goods, so there's not that much to insure anyway.
``If anything did get stolen we could more than pay for replacements, from the money we've saved on insurance premiums."
Michael admitted to a moment of unease when the recent bushfires threatened, and eventually claimed, many northern suburbs homes.
``The fires came close and I thought about the house burning down with all our possessions in it," he said.
``Ultimately though life and limb are more valuable than material goods - you can always start again."
Ms Atkins said the likelihood of renters having adequate home insurance cover was often linked with income levels.
``The research clearly shows that lack of insurance cover amongst renters correlates with income levels," she said.
``Also people living in units, flats, townhouses and terraces are less likely to have home contents insurance."
© 2002 Illawarra Mercury
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