Tenants Content Insurance
Insurance is often most needed by those who can least afford it. Three million households in social housing1 have no contents insurance, but are twice as likely to be burgled as privately owned properties2.12% of adults in the UK have no bank or building society account3, which makes buying insurance difficult for the poorest members of our society.
There are numerous insurance products on offer for those who can afford to protect their belongings. But for those on low incomes or without bank accounts it can be difficult to find the right level of cover and make the necessary arrangements. Excesses, or high minimum sums insured, can force people into being uninsured, having no protection at all, or being over-insured, paying for cover that they do not need. Some products require direct debit or standing order payments which means they are not accessible for those without bank accounts.
Insure-with-rent schemes provide a means of accessing insurance to protect personal belongings without the usual requirements of a bank account. Offering affordable weekly or fortnightly payments, either alongside rent, at Post Offices or via Pay Point terminals, these schemes offer insurance cover tailored for the individual needs of those on low incomes living in social housing.
Many social housing providers now consider the provision of a weekly or fortnightly paid scheme for tenants to insure the contents of their home to be an essential part of their tenant services policy, highlighting the need for protection, and going some way to combat financial exclusion.
Aon has been at the forefront of the growth in popularity of tenants contents insurance schemes and our services are currently being used by over 120 councils and housing associations.
2 Financial Services Authority (2000) In or Out? A literature and research review
3 Office of National Statistics (2005) British Crime Survey, 2002-2003
