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 £90billion 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% 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.
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 underestimate 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 £55billion on renovations last year, and that was just between March and July 2020. Shares in Sonos and Peloton have soared, and Sony PlayStation 5 and Microsoft’s latest Xbox console have seen significant sales, too.
Trying to explain the drastic differences based on age, the data show a generational divide with regards to understanding contents insurance. Only 11% of 18 to 25-year-olds said they had a good understanding of what’s covered by contents insurance, compared to 64% 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 £90billion 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.”