"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"
According to Paymentshield, the new product will see tenants pay for their contents cover each month and addresses one of the biggest barriers for tenants taking out contents insurance: uncertainty about the length of their tenancy.
It is the first rolling tenants’ contents insurance product in the market to be backed by a panel of insurers, ensuring that tenants get a competitive quote.
Paymentshield’s tenants’ contents insurance was previously offered solely on an annual contract basis.
Research from data analytics company GlobalData shows over one in five UK tenants (21.5%) 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 in May this year showed that 42% of tenants would prefer the flexibility of paying for a policy on a rolling monthly basis, compared to 35% saying they’d rather pay annually.
Paymentshield’s rolling product will be offered to tenants through all of Paymentshield’s rental partners.
The new product launch is the latest move in Paymentshield’s campaign to plug the insurance gap in the rental market. Paymentshield’s latest research also highlighted that only 51% of renters have contents insurance. This is despite many having high-value items, with one-third (33%) 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 payout to a policyholder coming in at over £42,000 for a theft claim.
The new rolling tenants’ contents insurance is one of two changes Paymentshield has made to its tenants’ protection products. 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.
The refreshed liability product now offers greater value by increasing the sum insured value to £10,000, extending the cover to include garden cover, and reducing the excess, alongside a reduced premium.
Paymentshield’s tenants’ contents cover includes tenants’ liability insurance as standard.
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 to 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.”