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SAGIC, ECH Partner To Instruct New Home Insurance Policy

Salvation Army General Insurance Corporation Ltd (SAGIC), which is the insurer fully owned by The Salvation Army, and specialist broker ECH Facilities Ltd have united forces to introduce a home insurance policy intended for closing the so-called premium poverty gap.

“The sad truth is that those who need insurance the most are the least likely to be able to obtain it, either because they can’t afford the premium, or because they live in postcodes deemed high risk by traditional insurers, or because they’re subject to punitive exclusions,” said ECH managing director Neil Bresler – the veteran broker who planned the SAGIC Core Home policy – when the proposition was launched.

“These conditions have locked millions of people out of protection, and our industry has done little to move the needle, until now. We’ve subtracted high-risk elements like jewelry, valuables, and accidental damage as well as fringe benefits, which are the prime factors behind the high cost of cover, but made sure customers are protected against major perils such as fire or burst pipes.”

According to ECH and underwriter SAGIC, the policy provides content cover and alternative accommodation cover worth £30,000 and £10,000, respectively, for a monthly premium of £4.

Citing insurance’s “noble roots,” SAGIC chief executive Gordon Dewar commented: “Our partnership with ECH is a salutary reminder that the insurance industry still has the imagination, energy, and focus to be a force for social good, and we are thrilled to be playing our part in safeguarding those that need our help most.”

The SAGIC Core Home policy seeks to cater to those with no home contents insurance.

“This product is placed for those that require essential cover only; we don’t cover students (they are served by other specialist insurers), and we can’t cover for flood risk in all postcodes,” said Bresler.

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