Most renters would take out income protection if it contributed to their credit rating.
This is according to research from Canopy and LifeSearch conducted with 594 Canopy customers which also found 74% of renters lacked the safety net of income protection, while just 8% said they had a protection insurance policy designed to replace their income.
And almost half (47%) of respondents said they were worried about their ability to pay their rent and bills.
When respondents were asked what would persuade them either as an employee or self-employed worker to invest in protection cover, more than half (52%) said it would be very useful if it contributed to their credit rating, supporting their financial track record.
And when asked if they would receive their full salary when being unable to work due to illness or injury, just over a third (36%) said their employer would do this for more than three months.
A further 16% said their employer would not pay them anything, while 10% who were self employed would not receive anything.
More than a third (35%) said they did not know how long they would be paid their full salary for.
Justin Harper, chief marketing officer of LifeSearch, (pictured) said: “With property prices continuing to rise, lack of affordable housing for everyday families and rising mortgage costs, the number of people in the UK rental market has seen a continued and notable increase.
“Almost a fifth of UK homes are now privately rented and with rent now forming an increasingly growing proportion of people’s income, the prospect of financial shocks – particularly through accident or illness – are becoming increasingly worrisome for renters.
“This is perhaps even more concerning for those with pressing financial commitments, including families and those caring for others.
“Although it can often be overlooked, it’s times like these that insurance cover such as income protection is becoming increasingly important to ensure individuals’ financial security through uncertain times.
“A big part of solving this issue is to ensure that renters can access the right sort of support and insurance for them and, if needed, expert advice.
“With more and more renters now susceptible to income shocks, LifeSearch is working closely with Canopy to help address this ominous renter resilience gap.”
Chris Hutchinson, CEO of Canopy, added: “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.
“An affordable solution that fits the modern renter demographic is key to increasing the uptake of this type of cover, and decreasing the risks for all involved.“