Half of private renters either don’t have contents insurance or don’t know what it is, leaving them financially vulnerable to theft, damage, or loss.

Digital bank Monzo reveals almost a quarter - at 21% -  don’t think they need contents insurance, while 42% either mistakenly assume their landlord will cover the costs of belongings or don’t know who is responsible.

Costly misunderstanding

It said this could be a costly misunderstanding and potentially set renters back a whopping £12,144 - the average value of a household’s possessions.

Accidents and unexpected events happen more often than most realise, with 58% of renters having experienced incidents that could have been covered by contents insurance, explains Monzo.

The bank has now launched contents insurance, which offers cover for damage and theft, inside and outside the home, including replacement of locks and keys.

Higher value items can be added as an optional extra while users can personalise their policy with customisable add-ons and make a claim in the app or by phone.

Phoebe Hugh, of Monzo, said: “We’ve heard from customers that contents insurance is an area they find confusing and tricky to manage so we’ve put a simple and flexible offering into their Monzo app, making it easy to get the cover they need and track it alongside the rest of their money.”

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