THE financial services arm of Marks & Spencer is expanding into household insurance, claiming that its new product will avoid “small print practices” that give the insurance industry a bad name.

The insurance product will be launched by Marks & Spencer Financial Services, which is one of the few bright spots for the troubled retailer. The product offers zero excess, a protected no-claims discount allowing one claim every four years, and no inner limits on the policy up to £4,000 — meaning that most valuable items will not have to be declared separately to the insurer.

Customers will also not be required to estimate their building and contents value, with the insurer saying that it will calculate this for them.

M&SFS also released research carried out by the Henley Centre claiming that up to 60 per cent of people either underestimate or overestimate the amount of cover required, with about one in two people unsure of how much cover is required.

M&SFS earned pre-tax profits of £106.6 million last year, a 15 per cent increase over the previous 12 months.

Until now M&SFS has concentrated on selling life insurance and long-term savings products.