ABI launches contents insurance scheme for Londoners

by Gill Montia

Story link: ABI launches contents insurance scheme for Londoners

The Association of British Insurers (ABI) is starting work on a new scheme aimed at providing low-cost contents insurance to low-income Londoners living in social housing.

The Association has teamed up with insurer Aviva and insurance broker Aon to embark on discussions with London local authorities and housing associations, with the idea of developing tenants’ insurance schemes.

According to latest estimates, 750,000 people in the Capital live in local authority or social housing and unfortunately therefore face a greater risk of crime.

Households are twice as likely to be burgled and a third more likely to experience damage by arson than on average.

At the same time, they are less likely to have their belongings insured than anywhere else in the UK, with four in 10 local authority and housing association tenants in the Capital unprotected.

ABI director of general insurance and health, Nick Starling, says: “Many low-income Londoners struggle to access basic financial products, such as contents insurance. This makes it difficult for them to plan for the future, and leaves them at the mercy of unwelcome events, such as burglary.”

He adds: “Helping landlords provide tenants’ insurance will ensure that many unprotected and vulnerable Londoners have the financial protection they need.”

In related news, the Environment Agency recently backed the idea of social landlords being encouraged to provide insurance cover for the less well off by including the cost in rent.

The government department made the suggestion in its recent assessment of flood risk in England, which put one in six homes in danger of flooding.