Tenants’ contents insurance provider offers a subscription model

Tenants’ contents insurance provider offers a subscription model

0:02 AM, 22nd June 2023, About 11 months ago

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A general insurance platform provider has unveiled a new rolling subscription model for tenants’ contents insurance in a bid to deliver flexibility for renters.

Paymentshield says that its offering is a first and 42% of UK tenants expressed a preference for the flexibility of paying for an insurance policy on a rolling monthly basis, compared to 35% who favoured annual payments.

In response to this demand, the firm is now offering a product to tenants through its partners and will help bridge the insurance gap in the rental market.

It adds that its research reveals that only 51% of renters have contents insurance, despite many possessing high-value items – one in three renters say their belonging are worth more than £10,000.

‘Flexibility is incredibly important’

Paymentshield’s director of distribution for lettings, Rana Ali said: “We know that tenants are more transient than homeowners and as a result, flexibility is incredibly important in the products and services they buy.

“We’re really proud to launch our new rolling product, which meets the needs of the rental market and means tenants are not tied into an annual contract.”

He added: “Hopefully, we’re making it easier than ever for tenants to access the protection they need and helping to chip away at the insurance black hole that does still exist in the rental market.”

The firm is also refreshing its tenants’ liability insurance that will protect their deposit but also offer cover to damage caused to the landlord’s property.

Obstacles preventing tenants from obtaining contents insurance

The firm says its new offering addresses one of the big obstacles preventing tenants from obtaining contents insurance which is uncertainty surrounding their tenancy duration.

Backed by a panel of insurers, tenants can access competitive quotes.

Payment shield also reveals that from tenants’ insurance claims from January 2021 to December 2022, theft, fire and escape of water were the most expensive claim areas.

The highest single payout to a policyholder during this period amounted to more than £42,000 for a theft claim.


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