It is a good question and Getsafe has done some research;
There’s one key factor that sets those with and without insurance apart: age. Almost half of the 25-34 year olds think they don’t need contents insurance, leaving £90bn of uncovered belongings at risk. This is one finding of a representative survey that mobile insurer Getsafe conducted among 2,000 British citizens.
Contents insurance is one of the most commonly purchased insurance policies in the UK. And this stands to reason, as who wouldn’t want to cover their belongings against risks outside of their control for a small fee? Despite this, 50 percent of Brits in their twenties and mid thirties don’t have this coverage* – despite having belongings worth over £35,000. In comparison, in the age group of 55+, nearly 90% have insured their home.
IE Comment: One of the most obvious facts that insurers need to face is that many people don’t leave home until they are over 25, therefore they don’t need insurance, they have bank of mum `n’ dad behind them. Even when they leave for University, or rent their first flat, they are often incapable of taking financial responsibility for possessions like phones, cars or clothing – it all gets replaced by their parents if the worst happens. Perhaps the answer is to market a sort of co-living policy, with a feelgood extra premium on top, which the app-user can earmark for the good cause of their choice?
Christian Wiens, CEO and co-founder of Getsafe, says: “Many people seem to misjudge the value of the items they own – especially younger generations. But with the number of technological gadgets increasing, it can be easy to under-estimate the worth of your possessions. The survey highlights how much many Brits would stand to lose should their possessions be stolen or damaged by a risk outside of their control.”
This is even more important as many people have added a lot of high value contents to their homes during lockdown, having invested in new home entertainment equipment or renovations. According to the 2020 Renovation Nation Report by money.co.uk, homeowners have spent over £55bn on renovations last year, and that was just between March and July 2020. Games consoles and exercise machinery like the Peloton bikes can also be high value items that attract thieves, plus many younger people now have a home office set up, rather than just a low value tablet or laptop.
YOUNGER PEOPLE DON’T SEE THE RISK
Trying to explain the drastic differences based on age, the data show a generational divide with regards to understanding contents insurance. Only 11 percent of 18 to 25 year olds said they had a good understanding of what’s covered by contents insurance, compared to 64 percent of those over 55 years of age. This suggests that insurance plays a greater role in the lives of older generations – even if coverage offers equally important benefits to young people. After all, young people often own expensive items, such as electronics, and not covering them carries the same risk, regardless of age.
“The survey calls for the insurance industry to overcome the generational divide between the “haves” and “have nots” of home contents cover”, says Christian Wiens. Otherwise, an estimated number of 6 million millennials have no contents insurance, leaving possessions worth over £90 billion unprotected and at risk.
To overcome the lack of knowledge and hesitancy when it comes to contents insurance – particularly among the younger generations – the insurance age gap is a great place to start. For too long, the insurance industry has ignored the needs of younger customers. Especially digital nomads expect the same online experience they get from other service providers, such as Netflix or Amazon. Only by delivering a digital, mobile-first experience and offering consumers more personal, customisable coverage will insurers be able to vie for the attention of the new generation of insurance customers.
Christian Wiens says: “ Insurance is a noble concept, but the industry forgot that it’s important to delight the customers. We need to make people enthusiastic about insurance again.” Addressing customers, Christian Wiens has one tip to get more out of your contents insurance: “Make sure to review the value of your possessions once in a while to ensure that you are adequately covered.”
Findings based on a YouGov Survey, conducted among 2,069 UK citizens between February 26th to March 1st 2021. The research surveyed adults in the UK between the ages of 18 and 65 via an online questionnaire