Young Australians (18-34) are the least likely to be covered by home insurance, and many (20 per cent) cite affordability as the reason, according to a new study by car and home insurer AAMI.
Almost one-third (31 per cent) of young Australians have no home insurance at all, and they are more than twice as likely to be uninsured as other people surveyed (14 per cent).
“With many young people either on starting salaries or studying and living away from home for the first time, they are least able to afford the financial blow of a home theft, or worse a home fire,” said Geoff Hughes, AAMI Public Affairs Manager.
“Many would be at a loss without their digital camera, mobile phone, laptop, or iPod, not to mention items of personal value like watches or special jewellery. These are among the most commonly stolen items and all are expensive to replace.”
More than one-quarter (26 per cent) of young Australians have experienced a home break-in and they are most likely to have experienced a home fire in the past year.
“Unfortunately the odds are stacked against young people – often their homes are more vulnerable to intrusion and home fire due to a range of factors, from leaving keys in obvious places to leaving electrical home appliances running when they go out.”
Non-insurance is particularly common among people who rent their homes – AAMI’s research shows that renters (52 per cent) are much less likely than owner-occupiers (92 per cent) to insure their home contents (source: 2005 AAMI Home Security Index).