New Zealand: 1 in 3 tenants lack contents cover
Source: Asia Insurance Review | Oct 2019
One-third of Kiwi tenants do not have home contents insurance, compared to 92% of homeowners, yet claims data show that over the last 12 months renters have made 5% more claims than owner-occupiers, according to findings of the 2019 AA Insurance Lifestyle Survey.
The survey showed those aged 45+ were significantly more likely to have their contents insured (70%) compared to those aged 18-29 (57%) and 30-44 (58%), yet 2% of renters mistakenly believed they were covered under their flatmate’s contents insurance, while another 2% didn’t know if they had insurance at all.
“The Lifestyle Survey has highlighted a worrying trend among predominantly younger tenants,” said AA Insurance head of product Aaron Dickinson. “Not only are younger renters less likely to be insured but, our claims experience shows, there’s some confusion around what contents insurance covers and what it doesn’t.”
“There’s a misconception that contents insurance is just for your items, when in fact, legal liability is a strong reason for young people, and especially renters to get contents insurance,” he said. Uninsured tenants can be left vulnerable if they are liable for damaging someone else’s property.
One-third of New Zealand households are now in rental accommodation, according to Statistics New Zealand. A