so what are insurance quotes based on

simpav

Today I was told by a major insurance company that my home insurance renewal quote is so high because they have to recoup the money paid out on a previous claim somehow.

I thought quotes were slowly based on risk, am I wrong?


Been with the same insurer for many years due to subsidence claim, the only claim we've ever made.

Faith177

Insurance does take into account a lot of the risks to load or discount on the inital base premium.

They may have increased this base rate/premium (know as a rate increase) due to the losses they have incurred this year. To that base rate they would then apply any loading or discounts applicable to you.

For example (al figures made up)

Base Rate £900
Claim Load + 50% = 1350
Area Discount - 20% = 1145
Marriage Discount - 5% = 1087.75
IPT + 6% = 1153.01

So you would pay the 1153.01 as your yearly premium. Next year that base rate could increase or decrease depending on the companies losses

Hope this helps

InsideInsurance

Risk is the major component of an insurance premium but you also have operating costs and commercial considerations that adjust the technical premium.

The average subsidence claim is in the region of £15,000 and so unless you really are paying stupidly high premiums they are unlikely to ever recoup the monies from you. Though having had a claim there will certainly be a loading applied because statistically the more claims you have the more likely you are to have more claims.

camphoroilexpor

There are probably many good reasons that you are looking for life insurance, and most of those reasons probably involve your family.

life insurance quotes help you to determine how much coverage you need to insure yourself. It is important that you determine how much coverage you need so that you can make sure your family is properly protected in the case of your death.

Health insurance quotes are available for many different plans so that you can mix and match prices and benefits to find a plan that suit you.

Thanks
White camphor oil

societys_child

camphoroilexpor wrote: »

There are probably many good reasons that you are looking for life insurance, and most of those reasons probably involve your family.

life insurance quotes help you to determine how much coverage you need to insure yourself. It is important that you determine how much coverage you need so that you can make sure your family is properly protected in the case of your death.

Health insurance quotes are available for many different plans so that you can mix and match prices and benefits to find a plan that suit you.

Thanks
White camphor oil

How strange . .
The op asked about home insurance, not sure what life or health insurance has to with it?

Could be post-count building

forgotmyname

And there was me thinking they pulled numbers from a hat.

Is White camphor oil a real name you reckon?

societys_child

forgotmyname wrote: »

And there was me thinking they pulled numbers from a hat.

Is White camphor oil a real name you reckon?

Is it for rubbing on your chest?

or am I getting carried away, seem to remember a film I once saw involving a buxom wench . . .

simpav

Thank you for you responses.

I do find it annoying though that even though they have acknowledged that the cause of the subsidence, a third party tree, is now being properly managed, they continue to penalise us.

simpav

i take you point InsideInsurance but we have only made one claim in 8 years, albeit one that would have cost them a lot.

dacouch

Loadings for subsidence claims are often compounded by Insurers data showing they've paid out a lot in claims in your postal code and / or a lot in subsidence claims. This often prompts them to increase the premiums in that postal code upon which your claims loading is added so a potential double whammy

*Scarlett

You can still try other companies who will consider your circumstances

http://www.homeprotect.co.uk/property-condition/subsidence-insurance

http://www.adrianflux.co.uk/subsidence/

Some of the mainsteam insurers will consider cover depending on how long ago the subsidence happened, how the property was affected, what repairs carried out, what has been done to prevent further incidents, etc. They may also require a suveyor's report.

If you feel you are paying well over the odds, this might be worth doing.