A study by Monzo revealed that half of UK renters either lacked contents insurance or were unaware of its existence altogether.
UK-based digital-only bank Monzo has launched a new Contents Insurance service to protect its customers’ belongings from loss, damage or theft.
Contents insurance is a type of home insurance that covers personal belongings inside a property, including furniture, electronics, jewellery, clothing, carpets, appliances, etc. Unlike building insurance, which covers the cost of rebuilding your home as a structure if it’s damaged or destroyed, contents insurance protects the valuable personal possessions inside, making it especially useful for renters and homeowners.
As for the new offering, Monzo acts as a distributor, while actual insurance coverage services are provided by an insurer called Chubb Limited – a leading global insurance company headquartered in Zurich, Switzerland. Chubb is handling all the managing, approving and paying out approved claims. It also leverages Sedgwick, a specialist claims handler, to manage claims and complaints for them. Monzo, in turn, is responsible for offering the product and assisting end customers with setting up, changing or cancelling their policies.
To avail of Monzo Contents Insurance, a person should own an open Monzo Current Account. Users can make claims through the app or by contacting support over the phone.
It is estimated that approximately 70% of UK households have contents insurance, leaving about 30% without this protection. Young people aged 18-24 are the least likely to have home insurance in place. The vast majority (82%) of this age group admit to not having a contents insurance policy due to thinking they wouldn’t need it or inability to afford it.
Monzo’s research also revealed that about one-fifth of surveyed renters believe they don’t need contents insurance, and 42% either believe that landlords cover their belongings (which is not true) or are completely unaware of who is responsible for that.
