APPENDIX 2: GHA HOME CONTENTS INSURANCE SCHEME
GHA Home Contents Insurance Scheme
The home contents insurance scheme operated by GHA was established by Glasgow City Council in 1982 and was transferred along with the housing stock to Glasgow Housing Association when it was established.
GHA switched from to its current insurance providers, Norwich Union in 2005 following a tendering process, partly because it offered the option of cover for accidental damage.
The GHA's scheme is in not related to the SFHA's Diamond Scheme, though it has similar characteristics: there is no excess; tenants can pay in a variety of ways with their rent; the premiums are relatively low (see Table below); and, premiums do not increase if a claim is made.
GHA Home Contents Insurance Scheme Premiums
Who | Cost | Cover |
Senior Citizens (Basic) | £1.56/month | Up to £5000, and includes limited accidental damage |
Senior Citizens (Upgrade) | £2.03/month | As above, though includes full accidental damage cover |
Other tenants/ owner-occupiers (Basic) | £2.50/month | Up to £8000, and includes limited accidental damage |
Other tenants/ owner-occupiers (Upgrade) | £3.24/month | As above, though includes full accidental damage cover |
The main variation between the GHA scheme and the SFHA's Diamond Scheme is that it is open to former tenants who have chosen to buy their homes. Owner-occupiers pay the same amount for the same cover.
Tenants can pay their premium with their rent into their rent account. Owner-occupiers no longer have a rent account and therefore receive an annual invoice which they can choose to pay wither by direct debit, cheque or via a pay-point facility.
Tenants who are in rent arrears can be accepted onto the scheme though individual circumstances will be investigated and could result in higher premiums being charged. If tenants with home contents insurance fall into rent arrears, their insurance is not immediately cancelled. Cover would be cancelled if no arrangements are agreed between tenant and landlord over how rent arrears and arrears of premium payments are to be covered
The insurers have the final say on whether to accept individuals onto the scheme. Reasons for declining an application may be criminal records or excessive and unreasonable claims records.
Around 14,400 GHA tenants have taken out cover through the scheme (c21% of tenants). There are significant variations in the proportion of tenants with home contents insurance across GHA's Local Housing Organisations ranging from, under 10% to over 35%.
The scheme is promoted in various ways including adverts run in the GHA and LHO newsletters, Evening Times, local papers and the local radio. Additionally there are occasional mail drops to tenants. The most recent mail drop which included a prize draw incentive attracted c 2,000 tenants to take out cover. In addition LHO housing officers are meant to actively encourage tenants to consider taking out home contents insurance, and application forms are included in tenants' induction packs.