High street bank HSBC has launched a new tailor-made insurance property insurance policy for tenants.

The bank says the policy will benefit graduates and young professionals living in rented and shared accommodation, unlike many insurers' policies, which restrict cover and charge higher premiums.

The new policy will cover belongings and contents up to £7,000. Additional cover is also available for items taken away from the home, including cash, credit cards and bicycles.

Phil Sellers, head of personal insurance at HSBC Bank, said: “As 30% of the UK's households live in rented accommodation, thousands of people could be paying over the odds for home insurance.

“With HSBC's possessions insurance, tenants only pay for the cover they need – giving them peace of mind at a fair price.”