Monzo Has a Go at Tapping Into The Renters Insurance Sector

The UK rental market is a tough gig for insurance brands. Many tenants don’t see the value in insuring their contents, especially if the landlord provides furnished premises, or a social housing trust is ultimately responsible for fixing stuff. That said, expensive games consoles, bags, cameras, laptops, phones and other items often have a value exceeding £3000 in total, so there is room for something affordable.

The problem is that many tenants are not interested in covering sofas, carpets, curtains, fridges or other appliances, as they feel that’s what their deposit is there for – back-up for general damage.

Here’s the word from Monzo;

Leading digital bank Monzo today launches Contents Insurance, a new product that makes it easier, faster, and more flexible for renters and homeowners to protect their belongings.

Whilst homeowners are more likely to insure their home and belongings, new research from Monzo reveals a major gap in renter protection – 1 in 2 UK renters (50%) either don’t have contents insurance or don’t even know what it is. With over 5 million privately rented households¹ currently in the UK, making sure Brits are protected has never been more crucial.

Monzo Contents Insurance is another step toward creating a seamless, all-in-one app experience where customers can manage every aspect of their financial lives effortlessly. The product offers cover for damage and theft, inside and outside your home, including replacement of locks and keys – and more. You can also add your higher value items as an optional extra. The product will be rolled out to all eligible customers over the next couple of weeks.

Key features include:

• Get covered in minutes: Customers can skip the endless stream of questions and get covered in just five crucial questions.
• Personalise your policy:  With expensive prices being a barrier for those wanting cover (41%), Monzo users can personalise their policy with customisable add-ons and instantly show how each choice affects the price.
• Make changes or cancel for free anytime – Yearly contracts can also be a turn off (12%), with Monzo, customers can change how much is covered or cancel at any time – with no fees attached.
• Claim in-app or over the phone: Make a claim in the app or on the phone at any time and be supported at every stage.

Almost a quarter of renters (21%) think they don’t need contents insurance, while 42% either mistakenly assume their landlord would cover the costs of belongings or don’t know who is responsible. This could be a costly misunderstanding and potentially set back renters a whopping £12,144 – the average value of a household’s possessions. Accidents and unexpected events happen more often than most realise, with 58% of renters having experienced incidents that could have been covered by contents insurance.

Phoebe Hugh, Head of Insurance at Monzo said: “We’ve heard from customers that contents insurance is an area they find confusing and tricky to manage – so we’ve put a simple and flexible offering into their Monzo app, making it easy to get the cover they need and track it alongside the rest of their money. And this is just the start of how we’re reimagining insurance to work for our customers. As we continue building the one app customers rely on to manage all of their money, we’ll be bringing many more exciting products to help people protect what matters to them.”

With contents insurance, Monzo continues its journey toward creating one app that meets all the money needs of its customers. Today, it has more than 11 million customers who can budget, save, borrow, invest, track their mortgage, consolidate their pensions all within the Monzo app. Contents Insurance is the next step on this journey with much more to come.