Scottish Government

This item was published during the term of a previous administration that ended in April 2007

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Tenants urged to take out insurance

20/03/2003

Tenants in the socially rented sector were today encouraged to consider taking up low-cost insurance offered by many councils and housing associations.

Social Justice Minister Margaret Curran announced a funding package of £400,000 to aid promotion of existing schemes because, in Scotland, 42 per cent of tenants have no contents insurance.

Ms Curran said:

"Insurance is a basic and fundamental service many of us take for granted. Possessions are important regardless of whether you rent or buy your home, yet many of Scotland's tenants are facing a daily risk from flooding, fire or theft.

"Tenants should have access to good quality, low cost insurance and many local authorities and housing associations provide very affordable services. We want to make sure that tenants are aware of the benefits of being insured and that those who wish to take out insurance can do so as easily as possible."

GLASGOW

In Shettleston, the burden of replacing flood damaged goods was greatly alleviated for tenants who had insurance. Glasgow Housing Association provides low cost insurance for tenants. Premiums are collected with rent and varying levels of cover are available. Payments start from as little as a pound a week for £8,000 cover.

EDINBURGH

In Edinburgh a low cost insurance scheme for council tenants has existed since 1980. The burden of replacing stolen or damaged goods could be greatly alleviated if tenants opt to participate. Payments start from as little as a pound a week for £9,000 cover. Discounted rates, from as little as 40 pence per week, are available for pensioners.

SOUTH LANARKSHIRE

In South Lanarkshire a low cost insurance scheme for council tenants has existed since 1996. The burden of replacing stolen or damaged household goods could be greatly alleviated if tenants opt to participate. Premiums are collected with rent and varying levels of insurance is available with payments starting from as little as one pound a week for £8,000 cover.

HIGHLAND

There has been a low takeup of Highland Council's tenant insurance initiative - only three percent of tenants (550 households) have joined the scheme which has been operating since 1996. The burden of replacing stolen or damaged household goods would be greatly alleviated if tenants have insurance. Premiums can be paid at post offices or at Council cash collection points and varying levels of insurance are available. Payments start from as little as two pounds a month for £9,000 cover, with discounted rates for pensioners.

DUNDEE

Around 20 percent of Dundee City Council's tenants have opted to join the low cost insurance insurance scheme which was launched in 1992. The burden of replacing stolen or damaged household goods would be greatly alleviated if tenants have insurance. Premiums are collected with rent and varying levels of insurance are available. Payments start from as little as four pounds per month for £10,000 cover. Discounted rates, from 50 pence per week, are available for pensioners.

ABERDEEN

Around 20 percent of Aberdeen City Council's tenants have opted to join the low cost insurance scheme which was launched in 1997. The burden of replacing stolen or damaged household goods would be greatly alleviated if tenants have insurance. Varying levels of insurance are available with payments starting from as little as a pound a week for £10,000 cover. Discounted rates are available for pensioners.

HOUSING ASSOCIATIONS

The Scottish Federation of Housing Associations (SFHA) provide a low cost insurance scheme for housing association tenants. Around 6,500 tenants have joined the scheme. Premiums start from under four pounds per month for £9,000 cover. A discounted payment is available for pensioners from around £2.50 per month.

Scottish Household Surveys (1999 and 2000) have shown that 42 percent of tenants had no home contents insurance.

A large number of local authorities in Scotland offer insurance with rent schemes and the Scottish Executive is encouraging others to follow this lead. Each council sets up its own scheme with insurance companies who negociate premiums based on the number of properties insured. Benefits of such schemes include competitive premiums, lower insurable amoutns, ease of payment (often with rent) and assistance with making claims.

The Executive is producing a leaflet to be distributed to tenants highlighting the benefits of insurance. The Association of British Insurers (ABI) has issued guidelines on running tenant contents insurance schemes to local authorities and housing associations.

Local authorities and the Scottish Federation of Housing Associations (SFHA) will receive funding from the Scottish Executive to enable them to actively promote house contents insurance schemes (either their own schemes or directly with insurance providers). This funding is based on a core allocation of £4000 per local authority and an additional pro-rata contribution. SFHA funding is based on a fixed contribution of £50,000.