The policy, given a five star rating from Defaqto, will help homeowners who have part-purchased their property meet monthly mortgage payments should sickness or unemployment occur.
It features one-day payouts, age-related premiums and a choice of cover options. It also offers free health, employment and legal cover.
British Insurance managing director Simon Burgess says: “All householders should be able to protect the payments they make and keep their home, whether it’s those with mortgages or those with rent and buy agreements.
“We all have a duty of care to help everyone keep their homes in times of economic uncertainty.”
Burgess now hopes the move will encourage other insurers to follow in its path.