Renters are leaving themselves worryingly under-protected and advisers must tackle this financial vulnerability, Scottish Widows has warned.
Research from the insurer found only 3% of renters have income protection, just 5% have taken out critical illness cover, while barely a quarter (24%) have life insurance.
The figures are only slightly better for homeowners, with one third (33%) having life insurance, 11% taking out critical illness cover and 7% having income protection.
Perhaps most concerningly, the data showed nearly a third (31%) of renters had taken an extended period of unpaid time off work due to illness or to care for a family member or friend.
Looking into the factors behind not taking out critical illness cover or life insurance, the most commonly-cited reason was that it was not a financial priority at the moment – the reason given by more than a fifth (21%) of renters. This compared to 16% of homeowners citing this reason.
Opinium Research quizzed 2,002 UK adults for the Scottish Widows report.
Rose St Louis, protection director at Scottish Widows (pictured) said: “The vast majority of renters and homeowners have no cover in place and the impact of this could be really frightening.
“If one day they are unable to work due to health reasons or unforeseen circumstances, millions may be unable to pay their bills and asked to leave their home.
“I would urge advisers working with non-homeowner clients, to discuss these potential issues and highlight renters increased vulnerability to financial shocks.
“Helping clients who rent to consider their protection needs will ensure they’ve thought about the future, with any plans taken out providing a safety net for themselves and their families.”
