Home insurance 22% up

Matt5575

My home insurance premium as risen by 22% since last year. No changes have been made to my account and nothing has changed with my home. I had a live chat with an advisor who offered me an £80 rebate as I was a "loyal" customer.
Should insurance companies be able to hike a premium by 22% and is the wiggle room to make a counteroffer lack of transparency? The counter offer didn`t come off the premium rate, just a cashback ( for some reason)
Thanks
Matt

born_again

Costs have gone up.
Every big storm & floods costs insurance companies millions. Who do you think pays for the money they pay out? 

DullGreyGuy

As of January this year the average rebuild cost had increased 21%

As of the end of Q3 this year home insurers had paid out £4.1bn which is the largest amount on record 

Average claim is up 33% from last year and subsidence claims up 61%

Last year for every £1 premium received £1.18 was paid out, on average and this years numbers are much worse than last year and so will be the 5th year in a row with underwriting losses. 


Insurance has complex accounting policies under both GAAP and SII, how a line is adjusted can have differences in the accounts even if to you the net result is the same. "Cashback" will be a marketing spend and as the average customer stays more than 1 year it can be amortised across time creating a Deferred Acquisition Cost asset on the balance sheet. 

TheSpectator

Matt5575 said:

My home insurance premium as risen by 22% since last year. No changes have been made to my account and nothing has changed with my home. I had a live chat with an advisor who offered me an £80 rebate as I was a "loyal" customer.
Should insurance companies be able to hike a premium by 22% and is the wiggle room to make a counteroffer lack of transparency? The counter offer didn`t come off the premium rate, just a cashback ( for some reason)
Thanks
Matt

To answer your questions 1) Yes 2) No

And see the valid comments from born_again. You are lucky you only had a 22% increase in the first place.

vacheron

Home insurance costs have gone up across the board. Eveyone I know has had similar jumps in home insurance prices this year.

I received my 20% renewal hike so shopped around for a better deal. Every other company on the price comparison sites was MORE expensive, so I begrudgingly, yet also gratefuly, accepted their renewal. 

dunstonh

Should insurance companies be able to hike a premium by 22% and is the wiggle room to make a counteroffer lack of transparency?

They are free to price their product as they wish.  Given the number of high risk events that have occurred over the last couple of years, the price increase is to be expected.  Along with the massive increase in building material costs (wood is going up daily in price and you cannot get concrete for love or money and a big shortage of trades has resulted in trade costs going up).

TELLIT01

Insurers can increase the premium by any amount they like.  The customer doesn't have to stay with that insurer.  Shop around for a better deal and take the business to them.

Trojanxxxx

My insurance was £220 I've had two claims after 15 years no claims.
One for £150 two years ago and one this year for £1700 both contents so the building is about 15 years no claims.
It's gone up to £304 with Direct Line which amounts to 40%,.
Is that increase standard?
Ive talked to them but been told they cannot reduce it.
I've found a quote with Swift AXA £290 but then get £34 back from Quidco.

Has anyone any experience of AXA.
It's £48 cheaper 
Thanks

DullGreyGuy

It's rather a modest increase given 0 years claim free and 2 claims in the last 2 years. Certainly wouldn't have claimed for £150 personally given the potential impact on premiums and if you follow it with a string of bad luck you can become almost uninsurable. 

Axa is a massive organisation which cover the full range from fairly budget propositions to ultra high net worth. The experience at one end of the spectrum will not be the same as the other end. Swiftcover is their basic online only proposition aimed at those that value price over quality. 

How was your claims experience with DL? Is it worth a jump into the dark with a unknown to you no frills replacement?

Trojanxxxx

Decided to stick with DL.
Both payments paid out in a week.
The second one was for a carpet only claimed for living room as i had spilt  printer ink  on it.
The  hall carpet was the same carpet .
The door leading into the living room was glass.
I read a case on here where someone was offered 100% for the room the carpet was damaged and 50% and were not happy went to FCA but ruled rightly the offer was fair.
I went back to DL and told them I wanted to amend my claim.
They asked me what I wanted told them 50% for the hallway and they agreed and paid in a week..
Just  remembered had a new boiler 12 years ago storm damage.
Decision made.

Lookz4Dealz

Hi, another question is, do I need home insurance?, obv I would like to but its shot up from £9pm, to £12pm, to £19pm, then last year £23pm now £30pm, Ive never made a claim, my house is on a hill so no floods for me etc, built 20 years ago and have had zero issues, so what if I just did'nt get insurance until it goes to a resanable price again?? I would only claim if my home fell down, everything else I would just fix myself, plumbing , electrics etc, I tried to push the max voluntary and mandatory I would pay to see if that took the price down and it didn't move at it.