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9 out of 10 tenants shun house insurance
JUST nine per cent of Sheffield council tenants have insured the contents of their homes – 18 months after many had contents destroyed in the flood and despite a major campaign to encourage them to get covered.
The figure was revealed after research by housing management company Sheffield Homes into the effect of the credit crunch on residents at its 42,000 properties.
A report by the firm said: "Some 91 per cent of social rented tenants have no insurance cover and 81 per cent have no savings. The impact of this is that a lack of insurance and savings makes families vulnerable to financial crises following unexpected events such as burglary or flooding. A lack of savings can lead to poverty in old age."
The company has urged estate residents to take advantage of its low-cost insurance scheme and is disappointed by the lack of interest.
Tenants are still not giving household cover a high priority despite the danger of being left with nothing in the event of a fire or flood.
Many at Winn Gardens estate, Middlewood, lost everything when the estate was inundated in the Great Flood last year and had no money to replace contents.
Sheffield Homes is also concerned about the number of its tenants who do not even have a bank account – 16 per cent – because those people then have to pay charges to cash cheques and are subject to higher fees for services.
The report said: "Many employers will only pay wages into a bank account and cheque cashing agencies may charge seven to nine per cent of the value of the cheque plus a fee.
"Most utility companies charge more for paying with pre-payment meters, pay point cards, postal orders or cash, rather than direct debit."
Sheffield Homes said tenants are struggling to afford day-to-day bills after a 17 per cent hike in the price of energy and a 12 per cent rise in food bills.
As such, the danger is that some tenants view insurance as an event lower priority.
The company is urging tenants to call in at its local area offices to find out about low-cost insurance, for free financial advice – including assistance to set up bank accounts – and help to clear debts.
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Weather for Sheffield
Friday 10 February 2012
Today
Light snow
Temperature: -6 C to 0 C
Wind Speed: 14 mph
Wind direction: South east
Tomorrow
Sunny spells
Temperature: -2 C to -1 C
Wind Speed: 9 mph
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