The findings that Brits are keeping ‘significant amounts of wealth’ in the contents their family home is an opportunity for brokers to help clients understand the importance of insuring their most valued contents and possessions, Legal & General said.
While over half (56%) of people aged 18 to 59 had both building and home contents insurance, 13% did not have either of these cover options, with a further 12% having contents insurance only and 3% solely using buildings insurance.
Compared to the amount of wealth stored at home, Brits also keep 60% of household wealth locked in their property’s equity and 22% stored as financial wealth.
Older households were more likely to have more assets stored in their home, with 10% of people aged 60 to 74 holding contents worth more than £75,000. In contrast, those aged 17 to 29 had the lowest-value home contents on average, with 73% of the demographic with household contents worth less than £20,000.
The value of home contents was lowest among individuals who rented a property. Some 20% of people renting have home contents worth less than £5,000, compared to 37% of homeowners who had home contents valued at between £40,000 and £74,999.
Kevin Roberts, broker director at Legal & General, said: “Brits are keeping significant amounts of wealth within the home and this trend looks set to continue in future. There are opportunities for brokers to help clients understand the precise value of their contents and possessions and indeed to protect those assets.
“With older people increasingly comfortable and engaged with the internet, brokers can’t assume that the role of face-to-face advice is sacrosanct among this group of people. However, it’s likely that brokers will be able to add significant value to this marketplace and should focus their efforts accordingly,” he added.