Paymentshield, a leading provider of general insurance platforms, has unveiled a rolling subscription model for tenants’ contents insurance. This innovative move aims to offer more flexibility to tenants while addressing the prevailing insurance gaps in the rental market.
This novel product permits tenants to pay for their contents cover on a monthly basis, overcoming one of the biggest hurdles for renters in acquiring contents insurance: the unpredictability of their tenancy duration. This marks the first rolling tenants’ contents insurance product on the market supported by an insurance panel, assuring tenants receive competitive quotes.
Previously, Paymentshield’s tenants’ contents insurance was exclusively offered on an annual contract basis. However, research from GlobalData reveals that more than one in five UK tenants (21.5%) haven’t purchased home insurance for their rented property due to uncertainty over the length of their stay. Further substantiating this point, Paymentshield’s survey in May revealed that over two in five UK tenants (42%) would opt for a flexible, rolling monthly payment plan over an annual one.
The novel rolling product will be available to tenants through all of Paymentshield’s rental partners. The launch is the latest effort in Paymentshield’s campaign to bridge the insurance gap in the rental market. Paymentshield’s research also found that only 51% of renters have contents insurance, despite a third (33%) estimating their possessions to be worth over £10,000.
A review of Paymentshield’s tenants’ claims data from January 2021 to December 2022 showed that theft, fire, and water damage were the most expensive claim areas, with the largest single pay-out reaching over £42,000 for a theft claim.
In addition to the rolling subscription model, Paymentshield has revamped its standalone tenants’ liability insurance, which covers tenants if they damage the landlord’s property or belongings. The updated policy offers improved value by increasing the insured sum to £10,000, extending cover to include gardens, and lowering the excess and premium.
Rana Ali, Director of Distribution for Lettings at Paymentshield, commented on the launch: “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.”
Defaqto, the independent financial rating company, has given Paymentshield’s tenants’ contents insurance a five-star rating.