Millions of people renting homes have no insurance safety net in place, said Scottish Widows.

The finding has prompted fears that many tenants would be unable to pay their bills if they were to fall ill, lose their job or the person they live with was to pass away.

Research by Scottish Widows found that only 5% of renters have taken out critical illness cover, 3% have income protection, and 24% have life insurance, leaving them with little or no safeguards if their circumstances change unexpectedly.

The most commonly-cited reason for not taking insurance was that it’s not a financial priority at the moment, referenced by more than a fifth (21%) of renters.

High housing costs

To make matters worse, renters are also subject to higher housing costs compared to those who own a home. Homeowners spend £525.90 a month on mortgage payments, but tenants fork out an average £658 on rent.

That means renters are arguably in greater need of a safety net, as their outgoings on average remain higher – and they have no property to raise credit against if needed.

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