Insurance scheme specialist Agency Underwriting is targeting students and residents of sheltered accommodation with its new policy covering personal possessions.

The Personal Property Policy is designed for people wanting to insure only a limited amount of possessions.

Legal liability cover is incorporated in the policy for the public and landlord's contents, where the tenant is responsible, as is lock replacement cover following theft.

Premiums are rated according to the type of accommodation and its location, but start at around £24 a year.

The policy is underwritten at Lloyd's and has an excess of just £25.

Richard Lamberth, managing director of Colchester-based AUL, said he had tried to bring clarity, simplicity and good value to a market where people are vulnerable to a loss but who might otherwise leave themselves uninsured.

"We believe this policy is priced affordably and the explanation of cover at every stage means our clients will always understand exactly the extent of their cover."