Why focus on home contents insurance?

Home contents insurance is simultaneously among the most demanded and least accessed types of insurance among low- and very low-income households (see table below).     

                                Very low income                          Low income
                                Households                                 Households
                                  (<£10k)                                 (£10k - £15k)   
                           Demand         Take-up             Demand           Take-up

Home contents         79%              44%                 83%                 61% Buildings                   31%              12%                 47%                 23%
Motor                      99%               95%                97%                  98%
Life                         55%               24%                 61%                 37%

Source: ABI Insurance Market Study No. 3, 2007  

Unfortunately, very-low and low-income consumers are the people who need home contents insurance the most:
 
Burglary – 1 in 25 social rented housing were burgled in 2007/08.  This compares with almost 1 in 50 owner-occupied households (Crime in England and Wales 2007/08, July 2008)

Arson – arson rates are 30 times higher in lower income communities than in affluent ones (Tackling Arson, Home Office, April 2006)

Flooding – people in the lowest income households are eight times more likely to be living in tidal floodplains than people in more affluent households (Addressing Environmental Inequalities, Environment Agency, October 2004).