The new digital contents insurance product Halifax Renters Insurance will provide contents protection up to £10,000
British banking brand Halifax has joined forces with US insurtech company Trov to launch a new digital contents insurance product called Halifax Renters Insurance.
The launch of the new product follows a survey taken up by YouGov on behalf of Halifax. The survey found that two-thirds of UK renters, at 62%, are at risk of not being able to replace their possessions if they were damaged or stolen as they did not take contents insurance.
According to the survey, young renters are at risk, in particular, with 42% of 25-34 year-olds renting their home. Out of these, three quarters of this group, at 70%, did not take cover for contents insurance, found the survey.
The major factor that makes renters turn off from taking the insurance is the perceived cost of cover.
How the new digital insurance product will address the issues with contents insurance
According to Halifax, the new digital insurance product offers insurance against lower sums. The company said that while traditional contents insurance policies usually cover £75,000-£100,000 as standard, this is more than what most renters need.
Halifax Renters Insurance will provide contents protection up to £10,000. The new contents insurance product is said to give users the ability to insure individual items whenever they need, which means they can switch on protection on or off by simply touching a button.
The new digital product provides online access and management throughout, thereby making it much easier for customers to take out cover, said Halifax.
Halifax Renters Insurance also comes with monthly subscriptions to enable customers to get cover when they require it without getting stuck into a contract.
Halifax Home Insurance head Jeremy Ward said: “Renters can easily fall into the trap of taking out individual insurance for only their prized possessions, such as a phone and laptop, but not taking out contents insurance as they don’t see the benefit of traditional policies.
“But when the cost of these individual insurance policies is added up, people can end up spending more on several policies than on a single contents insurance policy which would cover more than just those items. Working with Trov, we’re taking the hassle out of home insurance for renters, giving them peace of mind that their belongings are covered should the worst happen.”