Brokers are missing out on add-on revenue

Legal & General believes that greater awareness of the benefits of this additional cover will help advisers to ensure their customers have appropriate overall cover in place, as well as generating extra income for them.

Legal & General is rolling out a campaign across all distribution channels promoting the value of cover such as Extended Accidental Damage, Personal Possessions and Family Legal Protection which may be added to standard household insurance policies, at an additional cost.

The main add-on cover available includes:

Extended Accidental Damage: This cover helps towards the financial cost or repair of damage caused to buildings and/or the contents of a home by an accident. For example, if a customer was carrying out DIY and a nail is accidentally hammered through a pipe, or a foot is put through a ceiling.

Personal Possessions: When a customer insures their home contents with us, this provides cover for loss or damage to items both in and away from the home. Cover will apply anywhere in the UK, and for up to 60 consecutive days in any insurance year for the rest of the world up to the value of £1500. For example, if a customer had a bag stolen on holiday they would be covered for the contents if it was stolen or lost here or abroad,

Family Legal Protection: This provides cover towards the cost of legal proceedings in the UK for up to £50,000 for certain eventualities. For example, if a supplier installed a bathroom poorly a customer can use the cover to help towards any legal action they take to put it right.

Commenting, Phil Kennedy, business development director for Legal & General’s general insurance said: “We want to do everything we can to highlight to people what a false economy cutting back on their insurance cover could be.

“Not having add-on cover, which is available to all customers when they arrange their household insurance, could mean people are missing out on cover that can provide them with peace of mind for the sake of a few pounds per month.”

“For intermediaries, checking that their clients have appropriate cover in place could also provide a valuable additional revenue stream. Arranging all three add-on cover options for a client could generate on average an extra 50% commission on the new business.”