The Premium Reward Fund from specialised insurance brokerage service Private Insurance Portfolio invest 20 per cent of a customers premium over a three-year period and if they dont make a claim, the proceeds are returned to them at the end of the term.
It is available to those who spend £3,000 each year on their household insurance, and is designed to appeal to those owning multiple homes for personal use, or investors who are entrenched in the buy-to-let market.
A study carried out by Direct Line has supported the growing suggestion that an increasing number of people are paying this kind of sum on their annual insurance, showing that the number of UK second homes will rise by 24 per cent over the next ten years.
Provided by Sterling Insurance Group Limited which was founded in 1994, the investable element of the premium will be managed by Henderson Global Investors and placed in their Liquid Assets Fund which has an objective to outperform 1-week LIBID rates over the longer term.
Amelia Robertson-Young, managing director of Private Insurance Portfolio believes that they are turning the insurance market on its head: For too long people havent received enough reward for not claiming on their household insurance. Out clients will receive both a competitive premium and a return on that premium coupled with a highly personalised service.
In addition to the competitive price, the policy offered by Private Insurance Portfolio has a 5-star rating from DeFaqto and will provide benefits such as worldwide cover on an all risks basis for contents, fine art, antiques, jeweller and watches as well as all risks cover on buildings. There are also additional covers for identity theft, home emergency and trace and access cover, plus many other features. Legal expenses cover, pet insurance for cats & dogs and vehicle breakdown cover is also available.
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