Shariah compliant home cover has been launched to cater for Britain's two million Muslims.

Salaam Halal insurance, which launched Shariah compliant car insurance last year, is now offering three product options for home insurance: building only, contents only and building and contents combined.

The products are also designed to appeal to non-Muslims with an interest in products of an ethical or co-operative nature.

Chief executive of Salaam Halal insurance, Bradley Brandon Cross said: "We are delighted to be able to build on our current insurance offering and give people a real choice when it comes to protecting their two key possessions – their home and their car.

"As motor insurance is a legal requirement, and mortgage companies demand buildings insurance as a loan condition, British Muslims have been forced to take out products which are in conflict with their faith – until now. We are giving people the best of both worlds: a Shariah compliant choice at home and on the road plus a good deal on their insurance."

The Shariah compliant insurance is based on the concept of Takaful. Unlike conventional insurance where the risk is shifted from the policyholder to the insurance company, Takaful allows the risk to be shared between all policyholders.

The Takaful contribution is paid by the participants (equivalent to insurance premium) and is invested in strictly Shariah compliant investments (so they will not in interest-bearing investments or those linked to prohibited goods and activities including alcohol or pork) and any investment profits are distributed back to the Takaful fund.