Home Contents Insurance Tony Fawcett Executive Director Dean Seager - PowerPoint PPT Presentation

Home Contents Insurance Tony Fawcett – Executive Director Dean Seager – Development Director

THE FACTS This year we paid out over £XXK in compensation claims The take up of home contents insurance amongst social housing tenants is low as many tenants find it difficult to access mainstream contents insurance products due to the cost Our insurance premiums cost and requirement for a bank account. us XX per year Our schemes are designed to overcome some of these barriers, offering easier payment options, by illustrating there is no long term commitment and providing more realistic lower levels of cover. Making premiums affordable and the process simple.

Regulatory. A statement from the FCA Registered Social Housing Providers (RSHPs) or LAs do not need to be authorised by the FCA to arrange or advise on contracts of general insurance, as they have a specific exemption. This means they can arrange contents insurance for their residents and even recommend a particular product. It also means that a housing association offering an insurance-with-rent scheme can accept an additional sum on top of rent to pass on to an insurer as premium without needing to be authorised.

So what’s on offer? The Thistle Tenant Risks Home Contents Insurance Scheme And the Scottish Federation of Housing Associations ‘Diamond Insurance Scheme’ Why two schemes?  Historic  Provides tenants with choice

The Thistle Tenant Risks Scheme is underwritten By Allianz Insurance plc. All administration is done in-house, by TTR Currently approximately 10,000 Scottish social housing residents from your organisations insure through the Thistle Tenants Risks Home Contents Insurance scheme –

And nearly 1,200 through the SFHA Diamond Insurance Scheme The SFHA Diamond Scheme is underwritten by Royal & Sun Alliance plc. Administration is via Uris Group Limited

So why do so many Social Housing residents not have Home Contents Insurance? “I haven’t got that many possessions” “Nothing is going to happen to me” “I can’t afford it” “My possessions don’t warrant insurance” “My landlord will pick up the bill” “I don’t want to fill out complicated forms” “It’s poor value for money” “I’m confused to which product to look at”

Why?  Lack of affordability 5.1 million  Lack of trust renting in social  Low usage of digital skills housing &  Living in high risk areas 5.2 million  Preferred methods of payment owner occupiers are also  Feel financially excluded recorded  Do not understand the value of insurance without cover

Financial exclusion is concentrated on local authority and housing associations Those who can least afford to lose their possessions have the most to New easier ways of purchasing benefit from home insurance may not be available contents insurance to the less privileged Insurance is not a priority for most tenants It is a government policy to reduce such exclusion People on low incomes lack spare money Limited capacity to replace or repair goods and belongings

We all have a responsibility to ensure that tenants have suitable home contents insurance. As social housing providers you are best placed to facilitate this need. And work together to actively promote and encourage all tenants to take out home contents insurance. You should make it clear to tenants that you will not pay for damage or loss of tenants belongings incurred in their properties from events such as fire, flood and theft.

As social housing providers and members of evh and the SFHA, you automatically qualify to offer your tenants these schemes. It’s a no cost option! Working with us (Thistle Tenant Risks), to provide a home contents insurance scheme, that’s not only affordable, but the cover is tailored to meet the lifestyles of your tenants. Why should you offer these Home Contents Insurance Schemes?

A family that is covered by household insurance is much more resilient to the Protection of savings financial impact of a fire, flood or break- in than a family which has little in the way of insurance protection. Peace of mind The ability to raise money quickly without having to sell assets, dip into savings or Ability to repay loans use unsecured credit to replace essential lost items (such as furniture, clothing, bedding, technology and white goods) provides a valuable buffer against shocks, especially for those on low incomes.

Why promote Home Contents Insurance Scheme? These Home Contents Insurance  Schemes were created with tenants in mind The cover is tailored to the lifestyle  of tenants They offer payment options (cash,  direct debit, cheque/debit card) There’s no long term commitment  No red-lining. All tenants are  eligible to apply All postcodes are included (ie not  excluding flood risk codes)

In particular these schemes are helpful for ✓ Tenants on benefits ✓ Unemployed ✓ If they have a carer ✓ Single parents ✓ Sick or disabled ✓ Living in sheltered accommodation ✓ Tenants with key safes ✓ Tenants with lodgers ✓ All general needs tenants Unoccupancy: our schemes help those who may have restricted cover; such as • Armed forces • Extended hospital Nursing homes • Family respite •

Some of Flexible regular Pay-As-You-Go payment options  No fuss, quick and easy to apply either through  the the post or over the telephone No excess (you do not pay the first part of the  benefits claim) of the Covers fire, theft, flood, water damage and  other household risks Home Covers damage to internal Decorations  Covers accidental damage to sanitary fixtures Contents  such as toilets and washbasins Insurance Covers damage to external glazing for which  you are responsible Scheme Covers lost or stolen keys  You do not need to have special door or window  locks You do not need to have a bank account  Premiums won’t increase if a claim is made  There’s no hidden administration or  cancellation fees Limits and exclusions apply. A full policy wording is available.

All covered as standard Cover at Fire, lightning, explosion, Loss or theft of keys Smoke damage Water or oil leaks earthquake a glance Accidental breakage Loss of metered oil Theft or attempted of mirrors, glass, Storm or flood & water theft hobs Tenant’s Subsidence Visitor possessions Malicious damage improvements Tenants Liability Money & Credit Household removal Freezer contents including internal Cards decorations Accidental Damage to home Replacing Deeds and Valuables up to 33% Accidental death entertainment documents of the sum insured equipment (not portable items) University Contents Theft from Third party liability Contents at College in the open outbuildings Being hit by aircraft, Wedding and vehicles, animals, Riot Christmas gifts falling trees or branches Limits and exclusions apply. A full policy wording is available.

What are the sums insured? £4,000 - £35,000 available to residents in sheltered housing (TRR) £6,000 - £35,000 available to tenants aged 55 and over (TTR) aged 60 and over (Diamond) £9,000 - £35,000 available to all other tenants Optional extensions available? Extended Accidental Damage Cover For accidents whilst in the home, example spilt paint, dropped vase, scratched table. - covered up to the sum insured. Personal Possessions / Personal Belongings (that’s items you carry around every day, covered away from the home) example, hand bag, wallet, spectacles, mobile phone. - any one claim is limited to £500 per item. (TTR) - any one claim is limited to £250 per item. (Diamond)

Payment Methods  Both the Thistle and Diamond scheme offer various payment methods; - Fortnightly or monthly by cash using a swipe card - PAYG - Monthly by direct debit - PAYG - Annually by cheque, postal order or direct debit  Premiums depend on postcode (there are 3 areas)