Monzo has become the first UK digital bank to offer contents insurance. Their research found millions of renters have about £12,000 in unprotected belongings.
Customers can access the new insurance by answering just five questions in the app, compared to 48 questions typically required by other providers.
The insurance covers damage and theft both inside and outside the home. Users can customize their policy by adding high-value items like phones, laptops, and jewelry.
Monzo's survey revealed half of renters either have no contents insurance or don't understand what it is. This creates a significant protection gap between homeowners and renters.
With over 11 million customers, Monzo is now the UK's seventh-largest bank. The Office for National Statistics estimates there are more than five million privately rented households in the UK who could benefit from this service.
The new insurance offering will become available over the next couple of weeks.