WIGAN AND LEIGH HOUSING
BUSINESS, INVESTMENT AND PERFORMANCE COMMITTEE 20TH APRIL 2010
Tenants Home Contents Insurance Scheme
Report of the Director of Housing Management
Author: John Choudhury Tel. No: (01942) 702854
To inform Board Members of the Council Decision to extend the current contract for the
Tenants Home Contents Insurance Scheme until April 2013.
Board is asked to note contents of report.
For decision, discussion or information? Information
For the open part or the press and public Open
excluded part of the agenda? If press and
public excluded please state reason.
Resource and Value for None - within existing resources.
Employee Implications: None
Key Risks incl. Company None
relationships, health and
safety and legal implications
Equality (Impact) Assessed? Yes No Not Applicable X
Equality & Diversity and The scheme improves access to home contents insurance for
Community Implications: disadvantaged groups.
Impact on Premiums will be frozen until April 2013 with additional terms
Tenants/Customers: being considered by Aviva.
Environmental Implications: None
Area Forums Affected: All
Tracking/Process Consultation Area Forum/s Committee Board
20 Apr 2010
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1.1 The Tenants Home Contents Insurance Scheme was launched on 3rd April
2000 and provides home contents insurance to tenants, payable weekly with
their rent. It is open to all tenants with a clear rent account with no penalties
for living in a ‘high risk’ area.
1.2 The scheme is administered by Wigan and Leigh Housing on behalf of Wigan
Council, in conjunction with AON who act as brokers. Cover is provided by
Aviva (formerly Norwich Union).
2.0 Current Position
2.1 The scheme provides tenants with the option to take out contents insurance
cover and pay for this weekly with their rent. Table 1 below shows the levels
of cover and weekly premiums which have remained unchanged for 2010/11.
2.2 Table 1 – Levels of cover and premiums
Level of Cover Standard Cover Standard
Weekly Cost cover including
(48 weeks) full Accidental
£6,000* £0.88 £1.10
£7,000* £1.03 £1.29
£8,000* £1.18 £1.47
£9,000 £1.32 £1.66
£10,000 £1.47 £1.84
£11,000 £1.61 £2.02
£12,000 £1.76 £2.21
£13,000 £1.91 £2.39
£14,000 £2.06 £2.58
£15,000 £2.20 £2.76
£16,000 £2.35 £2.94
£17,000 £2.50 £3.13
£18,000 £2.65 £3.31
£19,000 £2.79 £3.50
£20,000 £2.94 £3.68
£21,000 £3.09 £3.86
£22,000 £3.23 £4.05
£23,000 £3.38 £4.23
£24,000 £3.53 £4.42
£25,000 £3.68 £4.60
* Only available to people over 60 years of age.
2.3 Unlike some policies offered in the private sector there are no penalties for
living in high risk areas.
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2.4 Social housing tenants are more likely to be financially excluded. This means
that they do not have access to a full range of financial services. Access to
low cost insurance, bank accounts and cheap credit all contribute to a person
being financially included. The provision of this low cost weekly paid
insurance scheme to Council tenants clearly falls within the financial inclusion
2.5 In 2007, an offer was made to improve the terms of cover available to tenants
in return for agreeing to a two year extension to the contract which would see
the contract running until 2011.
2.6 After consulting with Wigan Council, the offer was accepted.
2.7 In February 2010, we were again contacted by the brokers AON who stated
that the insurer, Aviva were offering the following:-
• a further two year extension through to April 2013.
• The existing rates would be fixed until 2013 regardless of loss
• The 6% loyalty bonus would continue subject to the combined loss ratio
remaining below 60%.
2.8 Aviva are also considering offering other terms although at the time of writing
this report nothing has yet been confirmed.
2.9 Discussions have taken place with Wigan Council and it has been agreed that
the offer be accepted although the Council will require the re-tendering of the
contract for cover from April 2013.
3.1 The Home Contents Insurance Scheme is continuing to perform successfully
in attracting and retaining policyholders and supports the financial inclusion
3.2 Premium rates will remain unchanged until April 2013 with increased benefits
for policyholders being considered.
3.3 The Council has instructed that the contract will not be extended beyond April
2013 and that it will be subject to tender.
4.1 Members are asked to note the contents of this report and the need to tender
for this service to continue when the current contract expires in April 2013.
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