4. RECOMMENDATIONS
1. The Scottish Executive should consider whether further (quantitative) research is needed to identify the characteristics of tenants who have taken out insurance either through their landlords' scheme or who have made their own arrangements. This might take the form of an additional question or questions in the Scottish Household Survey.
2. The Scottish Executive, through Communities Scotland, should continue to monitor how local authorities and Housing Associations are improving access to and take-up of home contents insurance.
3. The Scottish Executive should continue to support the development of new home contents insurance products and marketing of such products by local authorities and Housing Associations.
4. The Scottish Executive should instigate discussions with COSLA and the SFHA to consider whether the setting up a consortium or consortia would reduce procurement costs for home contents insurance scheme thereby reducing premiums and/ or providing extended cover for tenants including:
- cover against accidental damage
- personal possessions outwith the home
- higher maximum cover
- lower levels of minimum cover.
A consortium approach would also allow smaller authorities, including the three Islands Councils that currently do not operate insurance schemes for tenants, to benefit from economies of scale.
5. Local authorities and SFHA (or, if established, the new consortium) should work with their insurance brokers to design schemes that are most relevant to their tenants' needs. This could involve using Tenants' Surveys, Focus Groups and consultation with Tenants Organisations to identify what would encourage and make it easier for low income tenants to take out insurance cover. Consideration should be given to the development of new products that might attract low income households, in particular young single people and single parents to take-up home contents insurance; e.g. extending the lower level of cover currently only available to older tenants to all tenants.
6. Local authorities and SFHA should consider providing an 'opt out' scheme for tenants in sheltered housing based on the scheme operated by Hanover (Scotland) Housing Association.
7. The operation of with-rent schemes in respect of tenants who are in rent arrears should be reviewed in order not to exclude tenants who are in rent arrears from taking out insurance or cancelling the policies of tenants who get into rent arrears. For example, with-rent schemes allow tenants who are on full Housing Benefit, and therefore do not pay rent, to make alternative arrangements to pay their insurance premium. This facility should be extended to tenants with rent arrears.
8. Local authorities and the SFHA/ housing associations should consider improving the marketing of their home contents insurance schemes. For example:
- ensuring that all new tenants are provided with information about the insurance scheme and an application form not only when they start their new tenancy but also at the follow up/ settling in meeting or visit when they are more likely to be receptive to considering taking out an insurance policy
- providing a leaflet, application form and free post return envelope with the annual rent notification letter and in tenants' newsletters
- emphasising in all publicity about the scheme the possible impact of not being insured and the relatively low cost and easy payment methods attached to the scheme, using actual examples from tenants
- working with and encouraging tenants' organisations to actively promote home contents insurance amongst tenants
- aiming marketing at specific target groups in particular, the elderly, young single people and single parents
- providing information to counter the mistrust of insurance schemes that is evident amongst some tenants e.g. in relation to claims procedures and experience
- improving the awareness of frontline housing staff about the benefits of financial inclusion of low income tenants; emphasising the benefits to the landlord of tenants being insured and encouraging them to promote home contents insurance to tenants. Training of frontline staff to inform tenants of the insurance scheme will need to take account of FSA regulations.