Paymentshield has launched a rolling subscription model for tenants’ contents insurance, which will see tenants pay for their contents cover each month.
This 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 firm GlobalData found that more than one in five tenants (21.5%) had not purchased a home insurance policy for their rental property because they were unsure how long they would stay in their current home.
Research by Paymentshield in May showed that more two in five (42%) would prefer the flexibility of paying for a policy on a rolling monthly basis, compared with 35% saying they would rather pay annually.
Rana Ali, director of distribution for lettings at Paymentshield, 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 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.”
The product launch was the latest move in Paymentshield’s campaign to plug the insurance gap in the rental market.
Paymentshield’s research also highlighted that only half (51%) of renters have contents insurance, despite 33% stating that their belongings would add up to over £10,000.
The provider 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.
