"With a shortage of rental properties available and soaring rental prices, renters are struggling to secure accommodation and every dollar counts, undoubtedly forcing them to make a range of compromises," said Geoff Hughes, AAMI Public Affairs Manager.
"Nationally, only 51 per cent of Australian renters have home contents insurance versus 92 per cent of homeowners.
"This is of great concern given that our research has revealed that renters are inclined to engage in risky home security and safety practices."
The findings, drawn from the latest AAMI home security surveyi, reveal that many renters cite affordability and complexity as key reasons for being uninsured.
Renters underinsured
"Of the renters who do have home contents insurance, more than one-third (35 per cent) have not updated their insurance in the past five years - therefore, the value of their cover may not reflect new items they are bound to have acquired in that time," said Mr Hughes.
"One-quarter of renters said that the value for which they had insured their home contents would not be adequate to replace them in full."
Renters gave the following reasons for insuring their contents for less than their full value: not having increased their cover since acquiring new home contents/items (45 per cent); expense of insuring their belongings (30 per cent); and belief it is unlikely their possessions would be destroyed (10 per cent).
"Similarly, three in ten people who rent their homes (28 per cent) have no insurance for their personal valuables such as jewellery and cameras when away from home," said Mr Hughes.
Renters risk home security/safety
"Overall, renters are not as careful as they might be with their home security and safety - for example, one in six renters (17 per cent) leave their house keys ‘hidden' in obvious places such as under doormats or potplants," said Mr Hughes.
"Also, a significant proportion of renters leave electrical appliances on when they go out - four in ten (38 per cent) leave their washing machine unattended, one in six (16 per cent) leave their dishwasher on and one in eight (14 per cent) leave their clothes dryer running."
Renters vulnerable to home fire danger
Mr Hughes says renters' susceptibility to home fires is of particular concern - AAMI's research shows that they lack basic home fire safety protection such as smoke alarms.
"Alarmingly, twice as many renters as homeowners have no fire safety equipment, such as smoke alarms, fire extinguishers and fire blankets - 12 per cent versus 7 per cent," said Mr Hughes.
The findings are drawn from the AAMI Home Security Survey based on a national telephone survey of 2381 Australian households conducted in 2006 by Sweeney Research in all States and Territories, except WA.
"Also, renters are less likely than homeowners to regularly check that their smoke alarms are in good working order - 82 per cent versus 90 per cent.
"Worryingly, renters are less likely than homeowners to have a home fire escape plan in place, in case of a fire that cannot be extinguished - only half of renters (53 per cent) have a plan versus 61 per cent of homeowners."
Simple precautions for better protection - fire safety
Mr Hughes says that people who rent their homes would benefit from adopting some simple fire- safety precautions. It appears that renters themselves agree: the majority (81 per cent) admit it would be "sensible to have more equipment for dealing with home fire, such as a fire extinguisher or fire blanket", according to AAMI's research.
"Only six in ten renters (59 per cent) regularly clear their gutters of leaves and other debris versus eight in ten homeowners (80 per cent) - also, renters are less likely than homeowners to prune tree branches and foliage adjacent to their homes (67 per cent versus 77 per cent)," said Mr Hughes.
"While it is likely that many renters would perhaps consider such measures to be the responsibility of their landlord or similar, the fact is there is more we can all do to help ensure our own safety."
Renters vulnerable to burglary
One in three renters (32 per cent) have been burgled in their current home - they are also more likely than homeowners to have had the frightening experience of being burgled while someone was at home (31 per cent versus 25 per cent).
"One of the more telling findings from our research is that twice as many renters as homeowners claim they would feel safer living in a different suburb than their current one," said Mr Hughes.
Simple precautions for peace of mind - home security
Rental properties appear less likely than owner-occupied dwellings to have effective home security measures such as alarms - 17 per cent versus 28 per cent.
According to AAMI's research, renters are more likely than homeowners to consider a housesitter the most effective measure for protecting their home when empty - four in ten (39 per cent) agreed.
One in three renters (34 per cent) admit to feeling apprehensive or uneasy leaving home to go on holidays in case their homes are broken into while they are away.
"Despite this, renters are less likely than homeowners to make simple home security arrangements when they are away, such as having a neighbour or friend collect mail (77 per cent versus 87 per cent of home owners) - this is not surprising given fewer renters than homeowners know their neighbours' names (77 per cent versus 94 per cent)," said Mr Hughes.
Insurance affordability an issue
"Insurance affordability is a real issue, and it's possible that people who rent their homes will continue to ignore their insurance needs as they face financial pressure from increased rents and intense competition for rental properties, as vacancy rates continue to decrease," said Mr Hughes.
"AAMI is working to provide solutions for people who may otherwise be uninsured, such as our Fire and Theft Contents Insurance Policy, which provides $25,000 protection against fire and theft for contents, such as furniture, clothing and electronic equipment, while they are within the home.
"The policy is designed for people who want a simple, affordable policy to protect their home contents - it costs no more than $175 a year and customers can pay by the month when they purchase over the phone or face-to-face at an AAMI branch."
Information copyright © Australian Associated Motor Insurers Limited 2007
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