Less than half (46%) of UK tenants currently have contents insurance in place, according to a new survey. The research, based on responses from over 1,000 private tenants across the UK, reveals that the volume of private tenants surveyed with contents insurance dropped from 51% in 2023 to 46% today, despite previously being on an upwards trajectory.

Commissioned by insurance technology provider Paymentshield, the survey from YouGov suggests an apparent mismatch between tenants’ perceived and actual insurance needs. While 28% of uninsured respondents said they do not have enough belongings to make contents insurance worthwhile, over three in five (62%) of all respondents actually value their possessions at over £5,000.

One quarter of respondents said their belongings are worth between £5,000 and £15,000, with a further one quarter saying over £25,000, suggesting that many tenants are significantly underestimating the value of their belongings and their potential exposure to financial loss.

With potential changes to the insurance requirements that landlords can place on tenants brought about by the Renters’ Rights Bill which is currently going through parliament, Rana Ali, director of distribution for lettings at Paymentshield, said: “These findings show we’re at a pivotal moment for the rental insurance market, but tenants need to be informed about the potential changes that could impact their livelihood. The industry has a clear role to play in closing this information gap.

“We’ve worked hard to make uptake of contents insurance policies as straightforward as possible, developing slick technology to embed the insurance journey into the existing online journeys of our lettings partners, and introducing a pay monthly policy. With over three in five respondents having possessions worth more than £5,000, the financial risk of being uninsured is simply too great to ignore.”