IAG Labs has produced an insurance product tailored to budget-conscious consumers.

With Insurance 4 That, consumers can decide on items to cover, including iPhones, cameras, washing machines or even medical devices such as hearing aids.

IAG’s innovation division says the product is an “alternative to traditional contents insurance” because it offers flexibility for consumers.

“Insurance 4 That is a single-item insurance product that allows people to select the specific items within their home to insure and the amount they would like the items covered for,” IAG Labs CEO Peter Harmer told insuranceNEWS.com.au. “This keeps the cost of insurance down and provides cover for only the items that are needed most.”

The product is designed to appeal to consumers such as students, young professionals, first-time renters, pensioners and retirees.

It will cost $1.13 per week to insure an iPhone5 with a nominated value of $900 in Victoria, according to an online quote obtained by insuranceNEWS.com.au. The cover includes home damage or loss caused by theft and fire, and theft outside the home in Australia.

Customers have the option to pay premiums weekly, fortnightly, monthly or annually.

The product was introduced last week in partnership with non-profit organisation Good Shepherd Microfinance, whose community providers will pilot it in NSW, Queensland and Victoria.

“It’s important that everyone has access to appropriate insurance that enables people to protect their belongings, so they’re covered if something does go wrong,” Good Shepherd Microfinance CEO Adam Mooney said.

“Too often we see insurance fall by the wayside and we also see the financial stresses that a loss of an essential asset causes.”

Last month Good Shepherd Microfinance partnered with Suncorp to introduce Essentials by AAI, which offers contents and car insurance to people on low incomes. It is aimed at the 20% of adult Australians with no contents, car or home cover.