£175 billion worth of home contents uninsured

04 June 2018

• 4.8 million UK households have no contents insurance
• 42% of UK adults say insurance policies confuse them
• 92% of people say insurers could do more to make policies easier to understand

Almost five million households across the UK currently have no contents insurance, according to a new study released today by Co-op Insurance.

With the average value of home contents standing at £35,918[1], the research reveals that a total of £175 billion worth of contents are currently without cover.2

The study shows that those who reside in the North East are least likely to have any contents insurance, with a third (31%) of residents saying they don’t have a policy, followed by a quarter (28%) of Northern Ireland and a quarter (25%) of people living in Wales.3

Top 10 regions without contents cover:

  1. North East – 31%
  2. Northern Ireland – 28%
  3. Wales – 25%
  4. London – 24%
  5. South East – 24%
  6. East Midlands - 23%
  7. Yorkshire – 19%
  8. South West – 18%
  9. North West – 18%
  10. East Anglia - 17%

When looking at the reasons as to why this is the case, two fifths (42%) of UK adults explained that they found home contents insurance confusing, with a fifth (17%) saying they had no idea what their policy actually covered.

As a result of this confusion, three fifths (59%) prioritised price when choosing a policy, rather that the quality of the cover.

When asked how this problem could be tackled, an overwhelming majority (92%) of homeowners and renters felt that insurers could do more to make insurance easier to understand.

Three quarters (73%) said they would like insurers to use less jargon, half (55%) want information to be bullet pointed and a third (35%) want insurers to use real life examples.

Changes UK adults want to see to home insurance policies:

• Three quarters (73%) want less jargon
• Over half (55%) want documents to be bullet pointed
• A third (35%) want insurers to use real life examples
• A quarter (26%) want seasonal updates to be issued on cover – such as Christmas when the value of insured items in the home increases
• A fifth (20%) would like more visual examples
• A sixth (16%) want policy documents to be more interactive

In light of these findings, Co-op Insurance has launched a new online tool aimed at helping to make home insurance policies more easily understandable.

Caroline Hunter, Head of Home Insurance at the Co-op, commented:

“It’s concerning that two fifths of adults are confused when it comes to contents insurance, resulting in so many people going without cover.

“With 92% of people feeling that insurers need to do more to make policies transparent, it’s evident that the industry needs to look at new ways of effectively communicating policies simply.

“Co-op is committed to making insurance easier to understand and so we’ve listened to our members and developed a user-friendly tool, which allows people to clearly see what is and isn’t covered, enabling them to make the right decisions when purchasing home contents insurance.”

Co-op Insurance’s Top 5 tips for getting the right cover:

  1. Check your insurer’s definition of valuables
  2. Tell your insurer about any particularly valuable items
  3. Keep your policy up to date to allow for new purchases
  4. Don’t underinsure. Make sure your possessions are covered
  5. If you live in a flood risk area, check your insurers’ policy on flood damage

ENDS

Notes to Editors:

[1] Average home contents policy according to Co-op Insurance data 2017

2 27.1 million households in UK according to ONS. Co-op claims data shows that 21% don’t have contents insurance = 4,878,000 million without. 4,878,000 x £35,918 = £175,208,004,000 https://www.ons.gov.uk/peoplepopulationandcommunity/birthsdeathsandmarriages/families/bulletins/familiesandhouseholds/2016

3Research conducted by Atomik Research among 2,000 UK adults on behalf of Co-op Insurance.

Media Contact:

Jenna Moss
PR Manager
Email: jenna.moss@coop.co.uk
Mobile: 07770 441 828