Opinion & Analysis
Our duty of care to the renter community
16 Aug 2023
When clients think about IP, they often perceive that it’s something only homeowners really need to worry about it. if you own your home, you have a mortgage to pay and a significant asset to protect. However, its not, renters (amongst others) can be even more critical than it is for homeowners. If you have a client bank with renters, consider the following:
- Rent is on the increase and for most clients is one of the significant monthly expense, being unable to pay for rent, means two things (1) unable to pay for a number of other expenses (2) you could be evicted from your home (which can have another set of knock-on impacts). IP can irradicate this scenario all together and the associated peace of mind this can bring.
- Renters often have less savings than homeowners, which means they may be more vulnerable to financial shocks. If clients are unable to work for an extended period, it will deplete savings, leaving few options for paying expenses. IP provides that safety net allowing clients to continue meeting financial obligations even when out of work due to sickness or injury.
- Lack of employer benefits: Many renters work in jobs that don’t provide benefits. Those solely reliant on employer sick pay may be left without income during periods of not being able to work. IP can provide an additional layer of coverage that can help you bridge the gap and ensure a regular reliable source of income until a client is fit to return to work.
- Peace of mind: Finally, IP provides peace of mind for renters who may be worried about the financial risks of not being able to work for extended periods. Knowing that your financial commitments can be met can directly reduce stress and anxiety, allowing you to focus on your recovery and wellbeing.
Is IP just as important for renters as it is for homeowners – 100% yes. Rent is a significant monthly expense, and renters often have limited savings and may not have access to generous employer benefits. IP can provide a safety net that can help ensure that clients have a steady source of income even if they are unable to work due to illness or injury. This can directly help you avoid the risk of eviction, downsizing, reduce financial stress, and provide peace of mind. As a financial advice community, its so easy to overlook renters but we have a duty of care to take that extra step for this group.
Setul Mehta – The Openwork Partnership & IPTF