Soaring rental prices in Sydney may be impacting on the ability for some tenants to afford utilities, as a recent study has found the majority of Sydney renters don’t have contents insurance.
The survey, conducted by Insurer of the Year* Budget Direct, found nearly two-thirds (64%) of Sydney renters were without contents insurance. The national average from the survey of tenants who didn’t hold contents insurance was 55.8%.
Nationwide tenants aged 55-64 were the group most likely to say they couldn’t afford contents insurance.
The results are concerning as it was often those who could least afford to be burgled whose assets were unprotected, says Kimberley Moody, Communications Manager, Budget Direct.
“Many tenants are taking a big risk with their property,” says Ms Moody. “As well as theft, you can lose everything in a fire or as a result of storm damage. The cost of replacement is often much higher than people anticipate.”
Other key findings from the survey** include:
- One-quarter (24.8%) of consumers are unsure if their homes are adequately insured for fire and storm damage.
- One-third (33.6%) of consumers rated job security as their biggest concern over the coming 12 months – rising to 37% for those aged 45-54.
- The majority (57.5%) would cut back on entertainment costs first to save money, followed by holidays (48%) and lifestyle costs such as gym memberships, clothing and hair cuts (46.1%).
- Just over half (53.5%) will consider switching insurers for a better deal in the coming 12 months.
*Money Magazine Awards 2015, based on analysis conducted by Canstar of 35 insurers’ car and home and contents insurance policies.
**The Simply Smarter Consumer Sentiment Index powered by Budget Direct is conducted on a quarterly basis through Google surveys. The Index, conducted in June, is based on the responses of 1200 consumers aged 18 and over from all states and territories. Detailed results by state, age and income brackets are available.