CGU Insurance has linked up with the National Neighbourhood Watch Association (NNWA) in a £2 million five-year deal to provide sponsorship and discounted products to Neighbourhood Watch members.
Under the terms of the agreement, CGU will use 45 intermediaries to sell the product with additional marketing coming from NNWA.
To get the cheaper products, NNWA members will have to receive a security analysis from a CGU adviser. Once the adviser's recommended measures have been carried out, discounted household and contents insurance is offered.
Policyholders will also have a 24-hour helpline service at their disposal. Further benefits of between ten per cent and 17% on selected motor, travel, horse and boat policies will also be available.
Colleen Atkins, chairwoman of the NNWA, said: "This alliance provides us with much-needed funds and a guaranteed income stream which will allow us to help build safer, crime-free communities across Britain.
"We will use this as a platform for the development of future funding – not only for national and local crime prevention training and initiatives, but for the development of future commercial business."
NNWA expects the new policy to generate annual commission earnings with a guaranteed income of £400,000 for the NNWA.