General insurance platform provider Paymentshield has launched a rolling subscription model for tenants’ contents insurance.
Now tenants pay for their contents cover each month, instead of annually, addressing an issue for tenants taking out contents insurance for a tenancy of unknown length.
Research from data analytics company GlobalData shows over one in five UK tenants say they haven’t purchased a home insurance policy for their rental property because they are unsure how long they will stay in their current home.
Underlining this figure, research undertaken by Paymentshield last month showed that over two in five UK tenants would prefer a policy on a rolling monthly basis, compared to 35 per cent saying they’d rather pay annually.
Paymentshield’s latest research also highlighted that only half of renters have contents insurance. This is despite many having high-value items, with one third stating that their belongings would add up to over £10,000.
Paymentshield’s tenants’ claims data from January 2021 to December 2022 showed that the most expensive claims areas were theft, fire and escape of water, with the highest single pay-out to a policyholder coming in at over £42,000 for a theft claim.
The provider has also refreshed its standalone tenants’ liability insurance, which covers the tenant in the event of damaging the landlord’s property or belongings, and helps them to protect their deposit.
Rana Ali, director of distribution for lettings at Paymentshield, says: “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 also know that the number of people renting in the UK is rising. 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.
“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.”
