How schemes work

Landlords have an important role to play in promoting financial services, including insurance, to their tenants.  Home contents insurance is simultaneously the most demanded but least accessed type of insurance among low-income households.  

Low-income consumers often have very different needs from other consumers.  In recognition of this, insurers have developed tenants contents insurance (TCI) schemes, which are tailored to the requirements of consumers who might otherwise be excluded from insurance products.  The details of the schemes differ between providers, but there are a number of common elements:
 
Fixed, low premiums 
No excess to pay on a claim
Low levels of cover available
Flexible payment options (method and frequency)
No requirement for tenant to have a bank account.  

There are numerous TCI schemes available, all with varying features.  However, they can all be grouped into one of two broad categories: ‘affinity’ or ‘insurance with rent’ schemes.  

Affinity schemes  

Under affinity schemes, the role of the landlord is principally that of introducer: introducing the consumer to the insurer.  All of the administration – premium collection,  policy issue, etc – is carried out by the insurer. 

Insurance with Rent schemes  

In essence, ‘insurance with rent’ schemes are marketed and administered by the landlord.  Administration will typically include:

Handling proposal forms 
Collecting premiums
Issuing policies
Setting up accounts 
Sending out renewal reminders 
Other basic administration

Landlords will receive a commission from the insurer to cover costs arising from these activities.