Home insurance provider RentSafeUK has recently been snatched by online estate agent 99home, as the latter tries to broaden its services for tenants and landlords. However, this may not be enough to persuade home movers into buying insurance products.
Figures from GlobalData’s 2019 UK Insurance Consumer Survey suggest that home renters do not fully understand the benefits of home insurance products. The majority of renters without home insurance (22%) have not bought a policy as they believe that it is unlikely they will need insurance cover. Meanwhile, a similar proportion of renters (21%) consider that policies are too expensive for what they cover.
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Estate agents and home insurance
Housing all relevant products for home renters and landlords under one site will simplify the customer journey, creating synergies in renting and purchasing a relevant home insurance product. Simplification is one step in the right direction and may indeed tempt some renters to take out insurance products.
However, estate agents attempting to sell insurance products will likely find themselves having to reassess how to change their renters’ perceptions. Further tailoring home insurance products so that cover is provided for what is really needed can result in more attractively priced policies and partly tackle the main reasons why renters consider insurance unnecessary.
There remain good growth opportunities in the UK insurance market for renters, who tend to be in rental accommodation for a substantial time, although not necessarily in the same property. The main reason for this is that a large proportion of renters are unable to buy their own property, either because they are unable to raise a deposit or because the property market in their area makes it unaffordable for them altogether. While estate agents like 99home that sell landlord insurance are bound to benefit from selling such policies directly, they should put greater focus on their rental packages.
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By GlobalData
