Monzo muscles in on home insurance market to target underprotected renters
Monzo has become the first UK digital bank to launch contents insurance as challengers continue to take on mainstream lenders with in-app products designed to be fast and flexible.
Research by the bank found that millions of renters could have about £12,000 of belongings unprotected.
Customers can access the home insurance, which will become available over the next couple of weeks, by answering five questions about themselves and their home in the app.
This compares with around 48 questions in typical questionnaires for similar policies, according to the bank.
Monzo customers will also be able to customise their policy by adding on high-value items like phones, laptops, jewellery, art and cameras, and also change or cancel the cover with no fees.
The product offers cover for damage and theft inside and outside the home, and people can then make a claim either in the app or on the phone to bank staff.
The digital bank, which has more than 11 million customers, making it the UK’s seventh-largest bank, is the first of its kind to offer contents insurance.
A survey by the company found that half of renters either have no contents insurance or do not know what it is, leaving a significant protection gap between homeowners and renters.
The latest data from the Office for National Statistics estimates there are more than five million privately rented households in the UK.
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Get a free fractional share worth up to £100.
Capital at risk.
Terms and conditions apply.
The value of renters’ belongings – including electronics, clothing, furniture, jewellery and cosmetics – amounts to about £12,140 on average, Monzo’s survey of 2,000 people found.
Some 58% of renters have experienced incidents that could have been covered by contents insurance, according to the research.
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.”
She said it was “just the start” with plans to bring “many more” products to customers.
