A new British insurance industry push to boost contents insurance among people in rented public and community housing has received positive yet qualified responses in Australia.

The Association of British Insurers has launched a campaign urging more housing authorities to offer their low-income tenants contents insurance schemes.

One-third of UK “social housing” tenants have no contents cover, but schemes devised by insurers will provide low-cost insurance protection – sometimes for less than £1 ($1.80) a week – against losses from risks such as burglary, fire, flooding and accidental damage, with premiums to be paid at the same time as rent.

Gerard Brody, Senior Manager Financial Inclusion at the Brotherhood of St Laurence in Australia, says the British model is worth investigating.

“There hasn’t been from the Australian insurance industry a similar engagement to a solution for people living in social housing,” he told insuranceNEWS.com.au.

Australian lawyer and consumer advocate Denis Nelthorpe says that while renters on low incomes in this country face an increasing need for contents cover, the lack of a delivery network comparable to Britain’s local authorities and housing associations acting as agents is a serious problem.
 
“As gentrification forces low-income Australians into outer urban and regional areas there will be a growing need to provide protection from disasters such as flood, cyclone and fire,” he told insuranceNEWS.com.au.