Promoting contents insurance: what is in it for you?

In times of crisis, insurance is crucial in helping people get back on their feet.  Insurance is particularly valuable to people on low incomes, who are least able to recover financially when things go wrong.  Yet many people in low income households do not purchase home contents cover.  This clearly makes them vulnerable to risk.  But it also has consequences for their landlord. Promoting home contents cover is in the best interest of the tenant and the landlord.  

There are a number of benefits of promoting home contents insurance to your tenants:  

1.      It saves you money  

When disasters such as burglary, fire or flood strike, insurance will replace damaged or stolen goods.  Without insurance, tenants may fall into debt replacing their possessions and struggle to keep up other payments, such as rent.  Home contents insurance can therefore help to sustain many tenancies that would otherwise be at risk.   If properties are damaged by fire or flood and become inhabitable, insurance can cover the costs of rehousing tenants in temporary accommodation, removing the financial burden from landlords.   Where tenants’ possessions are damaged as a result of a maintenance problem, home contents insurance will cover the cost of replacement goods, thereby reducing the landlord’s liability.  

2.      It helps keep your properties in a good state of repair  

Encouraging tenants to take a responsible attitude to their possessions is likely to help promote a culture of taking good care of the properties they rent.  

3.      It helps you meet your financial inclusion responsibilities  

Landlords are all too familiar with the devastating impact on people who turn to unscrupulous lenders to help them replace stolen or damaged possessions following an unforeseen event.  Promoting tenants contents insurance can stop this from happening.   Financial inclusion is in landlords’ interest: it helps build and sustain healthy communities that people want to live and stay in, fulfilling the ultimate objective of every landlord.  

Here’s a useful guide to help you promote contents insurance to your tenants.