Low income households may struggle to afford home insurance leaving their properties at risk from theft, fire and flooding. However, now a new scheme has been introduced aimed at providing low-cost contents cover to those living in social housing.
The scheme is the brainchild of the Association of British Insurers (ABI), which has teamed with insurer Aviva and broker Aon to discuss with London-based local authorities and housing associations the idea of developing tenants' insurance schemes.
What is the point of low-income home insurance?
According to the ABI's findings, 750,000 people in England's capital city live in either social or local authority housing. Unfortunately this places them at even greater risk of crime - these households are twice as likely to be burgled and a third more likely to suffer arson-related damage.
Unfortunately most of the tenants do not have cover for their belongings with four out of 10 local authority and housing associations in the capital currently unprotected.
The ABI hopes that by providing tenants insurance many unprotected Londoners will be able to gain some financial protection.
What if you don't qualify for the scheme?
Even if implemented the scheme is currently only aimed at London - so what if you live outside this area?
In this case, you shouldn't give up your pursuit of cheap home insurance. Insurers assess risk on a case-by-case basis and so even if a neighbour or friend has received a high quote from an insurer it doesn't mean that you will. Be prepared to listen to the insurer's advice and to shop around.
There are many ways to secure a cheap policy. You could cut down the policy options you choose to just provide basic cover, or you could take steps to improve the security of your home.
The scheme is the brainchild of the Association of British Insurers (ABI), which has teamed with insurer Aviva and broker Aon to discuss with London-based local authorities and housing associations the idea of developing tenants' insurance schemes.
What is the point of low-income home insurance?
According to the ABI's findings, 750,000 people in England's capital city live in either social or local authority housing. Unfortunately this places them at even greater risk of crime - these households are twice as likely to be burgled and a third more likely to suffer arson-related damage.
Unfortunately most of the tenants do not have cover for their belongings with four out of 10 local authority and housing associations in the capital currently unprotected.
The ABI hopes that by providing tenants insurance many unprotected Londoners will be able to gain some financial protection.
What if you don't qualify for the scheme?
Even if implemented the scheme is currently only aimed at London - so what if you live outside this area?
In this case, you shouldn't give up your pursuit of cheap home insurance. Insurers assess risk on a case-by-case basis and so even if a neighbour or friend has received a high quote from an insurer it doesn't mean that you will. Be prepared to listen to the insurer's advice and to shop around.
There are many ways to secure a cheap policy. You could cut down the policy options you choose to just provide basic cover, or you could take steps to improve the security of your home.
No comments:
Post a Comment