M&S is the first home insurance provider in the UK to offer policyholders two unique features which help householders reduce their impact on the environment if they make a claim.
From 4th January 20101, at no added cost to the policyholder, M&S Home Insurance will offer the following elements which help households reduce energy costs and carbon emissions:
- Sustainable reinstatement of kitchen appliances: when a customer makes a claim for a fridge freezer, refrigerator, washing machine, tumble dryer or dishwasher, they will be offered a replacement which is A rated for energy-efficiency. A replacement electrical kitchen appliance will potentially save up to 140 KG of CO2 each year2.
- Sustainable total rebuild: if a property is damaged severely and warrants a total rebuild, properties will be rebuilt in line with the Code for Sustainable Homes (CSH) 4. This involves the use of sustainable materials where possible, significantly improving the energy efficiency of the property. Rebuilt properties will emit at least 44% less CO2 than building regulations would stipulate3.
Insurers usually replace lost or damaged possessions with their equivalent new items, returning the policyholder to the position they were in before making the claim.
M&S Home Insurance customers will instead be offered environmentally-friendly alternatives when the claim involves the replacement of the kitchen appliances stated above or the rebuild of a property.
The new policy features have been welcomed by householders, according to the results of a survey commissioned by M&S Home Insurance.
The poll revealed that 61% of people in Great Britain would be interested in a home insurance product that would help reduce the environmental impact of their home in the event of a claim.
David Wells, M&S Head of Insurance, said: ‘These new policy features, which we believe are firsts in the UK insurance market4, mean that the M&S Home Insurance policy is one of the most environmentally friendly products of its kind.
‘Feedback from householders has told us that they want an insurance policy which helps reduce the environmental impact of their home in the event of a claim, and we are proud to be able to fulfil that wish in our policy.’
Nick Kidd, of AXA Insurance, which underwrites the policy, said: “It is becoming increasingly common for companies to launch ‘green’ products on the basis of carbon offsetting facilities which our research suggests is not valued by customers.
‘The M&S product goes significantly further by providing tangible environmental benefits which will help customers to save energy, save money and ultimately, to help save the planet. According to the Energy Saving Trust, the average home will emit around 5 tonnes of CO2 a year, so these new product features can have a real impact.
‘At AXA we’re committed to reducing our negative environmental impact and are really pleased to work with M&S Money on this innovative product.’
Mat Colmer, Head of Housing and Supply Chain for the Energy Saving Trust, said: ‘Rebuilding houses to Code for Sustainable Homes level 4 is a demanding target covering a range of environmental criteria, so it’s encouraging that M&S Money is taking its role in making the UK’s housing stock more sustainable seriously.
‘It’s important that companies take the lead with ambitious and positive products and packages when it comes to reducing the UK’s carbon emissions, while clearly explaining the benefits of these low-carbon measures to their customers.’
Note:
1 The new features of the policy will be available to new customers effective from the 4th January and for existing customers at their policy renewal date on / after the 1st February.
2 Energy efficiency of white goods depends upon the individual appliance. Saving stated assumes that the current appliance is ‘D’ rated.
3 The Code for Sustainable Homes (CSH) sets minimum standards for energy and water use at each level and uses a one to six star rating system to communicate the overall sustainability performance of a new home. For more information: www.planningportal.gov.uk/uploads/code_for_sust_homes.pdf
4 The new features are unique to the UK personal home insurance market, according to a survey of the market by eBenchmarkers, an independent research company which evaluates the efficiency of direct-to-consumer financial services.
