Renters struggle under financial pressure with no income protection

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.

Share This Article