Millions of UK renters have no insurance safety net in place, prompting fears that many would be unable to pay their bills if they were to fall critically ill, lose their job or the person they live with was to pass away, according to a new study.

Research from Scottish Widows found that just 5% of renters have taken out critical illness cover, with 3% having income protection, and only one in four (24%) having life insurance – leaving them with little or no safeguards if their circumstances changed unexpectedly.

The study, based on a total of 2,002 UK adults, indicated that the figures are only slightly better for homeowners, with one third (33%) having life insurance, 11% taking out critical illness cover and 7% taking out income protection.

Furthermore, 31% of renters even revealed they have taken an extended period of unpaid time off work due to illness or to care for a family member or friend.

“The vast majority of renters and homeowners have no cover in place and the impact of this could be really frightening,” said Scottish Widows protection director, Rose St Louis.

“If one day they are unable to work due to health reasons or unforeseen circumstances, millions may be unable to pay their bills and asked to leave their home.

“I would urge advisers working with non-homeowner clients, to discuss these potential issues and highlight renters increased vulnerability to financial shocks. Helping clients who rent to consider their protection needs will ensure they’ve thought about the future, with any plans taken out providing a ‘safety net’ for themselves and their families.”

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