Paying for Peace of Mind

Access to Home Contents Insurance for Low-Income Households

Claire Whyley, James McCormick and Elaine Kempson

One in five households have no insurance policy for the replacement of home contents in the event of a burglary, fire or flood.

This report is based on the first comprehensive study of access to home contents insurance. The first half provides details of which types of household are most likely to be insured and their reasons for not having a policy, and identifies two key groups - those who have let a policy lapse because of a drop in income; and those who have always lived on low incomes and who are, effectively, excluded from financial products generally. It also assesses the risks and consequences of being uninsured.

The second half of the report focuses on insurance provision for low-income households. It includes a detailed analysis of the policies and practices of insurance companies from direct insurers to home service companies. It also examines a range of schemes that are operated through intermediaries, such as local authorities, housing associations and credit unions. It concludes with an analysis of the ways of increasing access to home contents insurance for those who, currently, are uninsured.

£14.95 paperback ISBN 0 85374 741 5 March 1998 128 pages 216 x 135mm