Image Renters financially exposed without protection according to Royal London
Image Rob Flynn
Staff Writer

Renters can get adequate insurance cover in place for as little as just over €15 per month in some cases.

Taking out a mortgage for the first time is often the moment when many families and individuals take out mortgage protection insurance, or a life insurance policy. 

This is mainly because it’s required by your lender, but also and most importantly because it helps to safeguard homeowners should the unthinkable happen.

However, tens of thousands of families and individuals in long-term rental accommodation may be in the precarious position of being financially exposed, according to leading insurer Royal London. 

This is because many renters don’t consider taking out protection cover at all when renting a property, despite being exposed to the same risk as homeowners.

Findings

The impact of the pandemic has had a detrimental effect on the supply of housing with construction activity nationwide still suspended meaning renters hoping to get on the property ladder may not own their own homes for quite some time.

The most recent Census data shows that 18% of the population now live in private rental accommodation, over 850,000 people, with many potentially having no protection cover in place if they got seriously sick and couldn’t work and thereby pay their rent. And as we know, rent in Ireland isn't cheap.

According to the Daft.ie Rental Price Report from Q4 2020, the average monthly rent in Ireland remained close to record levels and 0.9% higher than the previous year, despite the pandemic. 

Additionally, while rents in the capital fell by 3.3.% during 2020, this wasn’t reflected nationally with the rest of the country paying 5.6% more year-on-year.

That’s why Royal London is encouraging long-term renters to review the long-term benefits of putting their own form of ‘Rent Protection’ in place by taking out a life, serious illness and/or income protection policy.

Barry McCutcheon, Proposition Lead at Royal London explained:

Traditionally, the demographic of renters in Ireland was single people in their 20s and early 30s students, young professionals or those passing through on contract work who usually rented for short-term periods. Now, there is a growing cohort of families and individuals in their 30s, 40s and 50s who are renting long-term. For this group of people, financial security and protection will become more important as they grow older and settle down, especially if they have children to look after.

Long-term renters will be vulnerable if they were to experience an accident or illness as this could have a significant impact on the household’s ability to make rental payments. That’s why we are encouraging long-term renters to review their financial capabilities and consider putting their own form of ‘Rent Protection’ in place by taking out a life, serious illness and/or income protection policy.

Similar to Mortgage Protection

With rents continuously higher year-on-year and with the impacts of the ongoing pandemic still not fully realised, it’s never been more important for renters to consider how they can protect themselves financially if they were unable to pay their rental expenses due to sickness or the death of a spouse or partner.

By putting a life insurance policy in place you can help to protect you and your family, akin to how mortgage protection works to protect mortgage holders, with a lump sum payment made should a policyholder pass away. Added protection against falling serious ill is available with a serious illness policy.

And the good news is that it’s relatively inexpensive to take out a life insurance policy, with joint cover available for as little as just over €15 per month. 

Take a look at the costs of putting life cover in place from Royal London below.

Life cover type

Age(s)

Smoker status

Location

Average rent per month

Sum assured needed to cover rent for 10 years

Term (yrs.)

Premium per month

Single

37yr

No

Cork County

€1,057

€126,840

10

€15.15

Joint

35yr

38yr

No

No

Limerick City

€943

€113,160

10

€15.15

Joint

33yr

35yr

No

Yes

Dublin North City

€1,749

€209,880

10

€27.46

Single

32yr

No

Galway County

€937

€112,440

10

€15.15

Joint

39yr

42yr

No

No

Meath

€1,393

€167,160

10

€25.39

Joint

27yr

29yr

No

No

Galway City - 1-bed apartment

€1,021

€122,520

10

€15.15

Joint

33yr

35yr

No

Yes

Cork City - 3-bed house

€1,392

€167,040

10

€22.76

Joint

39yr

41yr

Yes

Yes

Meath - 4-bed house

€1,483

€177,960

10

€44.42

Joint

44yr

45yr

No

No

Dublin 2 - 4-bed house

€3,133

€375,960

10

€66.32

Get cover in under one hour

The only way to make sure you’re not paying out of pocket for your insurance cover is by comparing the best quotes on bonkers.ie. We even have our very own in-house insurance team who are dedicated in helping you find the best cover across Ireland’s main insurance providers.

Not only that, you could also get insured in under one hour when you apply online with us. This fast turnaround time is possible for those who are in general good health and return our electronic documents immediately.

You don’t have to sign any paper forms or spend time posting back documents to get your policy issued - a digital signature is all we need to complete your insurance proposal and get your insurance cover in place as quickly as you need it.

To apply just fill in some personal details online using our life insurance form and our comparison tool will produce a range of quotes for you in just seconds. Then simply choose the policy that's best for your needs and one of our team will be in touch with you to finalise your life insurance application and advise you on the next steps.

So, whether you’re looking for life, specified illness, or mortgage protection insurance, one of our insurance experts will be available to help you out. 

At bonkers.ie we’ve got you covered!