Monzo escalates insurance strategy with launch of homeowner cover

Monzo has launched a flexible buildings and contents product for homeowners, expanding its footprint in the UK general insurance market following the debut of its renters’ contents insurance in April.

The new combined Monzo home insurance proposition allows customers to purchase and manage their policy entirely within the Monzo app.

The cover includes up to £1m for damage from events such as flooding, fire and natural disasters, with optional extras for accidental damage, home emergency assistance and high-value items.

Monzo stated that the new product was designed to eliminate the inflexibility of traditional home insurance policies by allowing users to make changes or cancel their policy at any time without incurring additional fees.

Phoebe Hugh, head of insurance at Monzo, said: “Your home is your biggest asset and protecting it shouldn’t be a headache. Our customers told us that they wanted something simpler – cover that actually fits their lives and changes when they do.”

One-stop shop objective

In November 2023, Monzo Bank appointed Hugh, the former venture chief executive at Direct Line Group (DLG), to lead its new initiative. 

Hugh added that claims could currently be made over the phone, with in-app claims capability due to launch “soon,” as the launch aligns with Monzo’s aim of becoming a one-stop shop for financial services.

The new policy marks the second step in the digital bank’s insurance journey. It follows its entry into general insurance with the launch of contents insurance for renters earlier this year.

According to the bank, customers can receive a quote in minutes by answering as few as six key questions, with Monzo automatically filling in the rest. The policy can then be tailored through optional add-ons, with the cost of changes shown instantly in-app.