Zurich Municipal has launched a new scheme to help widen access to home contents insurance for social housing residents.
Available to local authorities and housing associations nationwide, the scheme aims to help housing providers tackle the issue of financial exclusion in their communities.
Zurich has consulted with a variety of stakeholders including MPs, local authorities and housing associations to shape a product that addresses barriers to take-up of cover and supports the Government’s plans for social inclusion, as outlined in its recent report, ‘Financial inclusion: an action plan for 2008-11’.
Recognising a general lack of clarity among tenants concerning the value of their contents (and that the landlord only insures the building) and that financing monthly or annual insurance premiums is beyond the majority’s means – many of whom do not have bank accounts, the insurer has developed a solution to make it as easy as possible for people to purchase appropriate protection.
The scheme is unique in that premium will be calculated on the number of bedrooms a property has. This removes the need for tenants to calculate an overall value for their home contents, which, if underestimated, could leave them vulnerable to being underinsured. A weekly cash payment option has also been incorporated to help tenants insure based on what they actually need rather than what they can afford. Policies can also be purchased and administered over the phone.
The scheme will be administered by Zurich, meaning that responsibility will not fall upon the housing association or local authority and policies will not be impacted or disrupted by any transfer of local authority housing stock to housing association control.
Tom Shewry, Head of Housing at Zurich Municipal said: ‘Financial concerns and the fact that insurance products are often seen as complicated and difficult to understand are reflected in poor adoption of these schemes. Last summers’ floods emphasized the value of cover. We have worked hard to increase access for those least able to replace their possessions should the worst happen and we look forward to working closely with our customers to improve take up.’
For further information contact
Louise Naqvi, Zurich on t: 01489 561574 m: 07875 885120: e: louise.naqvi@uk.zurich.com
Notes to Editors :
Zurich Municipal is the leading provider of risk and insurance solutions to Britain's public services. We are dedicated to providing expert advice and support to public service providers. For information visit www.zurichmunicipal.com
Zurich Financial Services Group (Zurich) is an insurance-based financial services provider with a global network of subsidiaries and offices in North America and Europe as well as in Asia Pacific, Latin America and other markets. Founded in 1872, the Group is headquartered in Zurich, Switzerland. It employs approximately 60,000 people serving customers in more than 170 countries.
1) We are not unique in offering weekly, monthly or annual payments so this has to be re-worded
2) We recognise that amongst tenants there are many who do not have bank accounts and we have to be able to accept cash payments weekly
3) There is a general lack of understanding as to the value of contents and that the landlord only insures the building
4) Insurance products are often seen as complicated and difficult to understand and we have ensured that our cover is as straightforward as possible.
5) By asking people to select their sum insured there is a greater likelihood of people insuring based on what they can afford rather than actually require
6) We must make it as easy as possible for people to buy hence a focus on people buying and administering by phone
7) We would like to work with our customers to maximise the take up
