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Rented properties 'may need extra insurance'

People who rent their homes may be underinsured, it has been warned.

A recent rise in the value of rented properties has prompted Sainsbury's Finance to warn consumers that the insurance that they took out on their home may not be adequate to cover the rise in value.

The value of rental properties has risen to £641 billion, according to Sainsbury's, which represents a monthly increase of £5.7 billion.

Steve Johnson, head of insurance at Sainsbury's Finance, said: "Underinsurance is a key consideration.

"When people take policies and they have a sum insured restricted to that policy, what they have to do every couple of years is assess whether or not that has increased."

Mr Johnson commented that people should be sure to shop around for the right cover for their home, especially if their contents are not fully covered by the landlord's insurance.

Last year the total value of rental properties was £571.38 billion, according to Sainsbury's figures.

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© Adfero Ltd

18/02/2008 09:31:52

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