The generational divide is a key finding of a recent survey conducted among 2,069 British citizens.
The survey revealed that a nearly half of 25–34-year-olds view contents insurance unnecessary, reportedly leaving £90bn of their uncovered belongings at risk.
The research surveyed adults in the UK between the ages of 18 and 65 via an online questionnaire, totalling 2,069 British participants. It details that 50% of people between their 20s and mid-30s don’t have contents insurance despite having belongings worth over £35,000.
The survey highlights that 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 under-estimate the worth of your possessions.
Contents insurance is one of the most commonly purchased insurance policies in the UK, however the recent survey shows drastic differences based on age, with only 50% of young Brits choosing to get this type of insurance. By contrast, nearly 90% of those in the age group of 55+ have chosen to insure their home.
Only 11% of 18 to 25 year olds who participated in the survey say they had a good understanding of what’s covered by contents insurance, compared to 61% of those over 55 years of age.
Due to this disparity, it’s estimated that around six million millennials do not have their goods covered, meaning that the insurance industry might need to tackle uncovered belongings worth £266bn.
One of the main reasons for the ‘insurance age gap’ is lack of knowledge. According to the survey, more than 50% said they didn’t have a good understanding of what contents insurance is.
In order to get more out of contents insurance policy, customers should make sure to review the value of their possessions periodically in order to ensure that they are adequately covered.