M&S Money launches eco home insurance cover ‘first’

Under the new policy, launched this week, customers making a claim for electrical appliances such as fridge freezers, refrigerators, washing machines, or dishwashers, will be offered replacements that are ‘A’ rated for energy-efficiency. Meanwhile, if their property is damaged and warrants a total rebuild, properties will be rebuilt in line with Level 4 of the CSH, which involves the use of sustainable and energy efficient materials.

The policy is being offered through M&S Money’s Home Insurance arm at no added cost to policyholders, but instead of replacing damaged possessions with ‘like for like’ items, it will offer environmentally friendly alternatives helping households reduce energy costs and carbon emissions.

M&S Home Insurance says it has launched the new product based on a survey of customers that showed that 61 per cent of people in the UK 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 market, mean that the M&S Home Insurance policy is one of the most environmentally friendly products of its kind.

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."

The Government wants all new homes to be build to a ‘zero’ carbon standard by 2016, but presently there is no policy on existing stock.
M&S Home insurance is part of M&S Money – the trading name of Marks & Spencer Financial Services. In November 2004, high street retailer Marks & Spencer sold M&S Money to HSBC.