A well-known broker is poised to launch a "cheap as chips" household insurance policy.

Backchat has been sworn to secrecy, until the deal is secured with the underwriter, but the no frills cover should be on the market in the next few months.

The aim is to target those who shun standard contents and buildings cover on cost grounds.

Forget niceties like accidental damage cover or fancy add-ons, this new product will be as pared down as you can get.

But, although the new product is stripped to the bare essentials, it will provide a safety net of cover. We'll spill the beans as soon as we're able to.