How on earth do Home Insurance Prices rise like this?!

Max68

Between 2012 and last year I hadn't paid more than £300 for Home & Contents Insurance.  Cheapest I could fnd last year was an annual payment of £346 through the Co-Op.  Just receivied my renewal and for the year I have been quoted £1,986.06.  {Expletive placed here}  Reasons given the usual underwiters have changed things blah, blah, blah.,  How on earth can it go up by that much with no claims etc?   It's daytlight robbery.  Surely these companies need to be looked into.

born_again

It is not just about your individual situation.

There have been many events over the last year that have cost insurance companies several billion pounds & that money has to come from somewhere.

https://www.insurancebusinessmag.com/uk/news/property-insurance/property-claims-hit-record-4-1-billion-in-2024-515038.aspx#:~:text=The property insurance sector has,of British Insurers (ABI).

MSE, is compare each year.

dunstonh

How on earth can it go up by that much with no claims etc? 

Insurance is about pooling risks.  Its not about you specifically beyond a handful of things.

 It's daytlight robbery.  Surely these companies need to be looked into.

Its not daylight robbery.  Have you not been aware of the climate changes in recent years (along with poor planning and increased population density)?   And the impact of inflation?  Or the shortage of builders, whose costs have increased above the headline rate of inflation?   Or the shortage of materials?

In the last 8 years we have had multiple drought years (which leads to cracks from movement) and multiple significant rain events that have lead to flooding.    

Covid and Brexit damaged supply lines.   Cheaper labour is returning to their origin countries.

Loads of reasons for increases.

Between 2012 and last year I hadn't paid more than £300 for Home & Contents Insurance.  Cheapest I could fnd last year was an annual payment of £346 through the Co-Op.

So, a minor 15% increase on £300.     How on earth can you refer to that as daylight robbery?

Smithcom

Max68 said:

Between 2012 and last year I hadn't paid more than £300 for Home & Contents Insurance.  Cheapest I could fnd last year was an annual payment of £346 through the Co-Op.  Just receivied my renewal and for the year I have been quoted £1,986.06.  {Expletive placed here}  Reasons given the usual underwiters have changed things blah, blah, blah.,  How on earth can it go up by that much with no claims etc?   It's daytlight robbery.  Surely these companies need to be looked into.

Without more context, it is impossible to know if £1,986.06 is competitive or reasonable....or not

I'm assuming that you were equally riled that your premium had increased so minimally between 2012 and 2024. 

However, fortunately, in the UK, there is more than one insurer, and they normally quote different terms, so it may be worth considering that as an option.    This way you will know whether your current insurer are competitive, or not. 

Please also be aware that you are not compelled to renew with the existing insurer.    They will have a view on the premium that your risk attracts an/or how much they wish to charge for providing cover.

If you have an 'average sized' house in an 'average risk' area with no adverse claims history and no unusual requirements or high sums insured, £1,986.06 sounds more than an average premium.    However, I would refer you back to my opening sentence, that 'Without more context, it is impossible to know if £1,986.06 is competitive or reasonable....or not'

Try obtaining alternative quotations, and then proceed accordingly

Hope this helps

SC

p00hsticks

dunstonh said:

Between 2012 and last year I hadn't paid more than £300 for Home & Contents Insurance.  Cheapest I could fnd last year was an annual payment of £346 through the Co-Op.

So, a minor 15% increase on £300.     How on earth can you refer to that as daylight robbery?

I think the 'daylight robbery' comment will be referring to the renewal quote of £1986.06, which I make is an increase of 574% on last years charge of £346 ?  I'd hardly describe that as 'minor' increase....

Max68

dunstonh said:

Between 2012 and last year I hadn't paid more than £300 for Home & Contents Insurance.  Cheapest I could fnd last year was an annual payment of £346 through the Co-Op.

So, a minor 15% increase on £300.     How on earth can you refer to that as daylight robbery?

You didn't read my post properly.  Last year I paid £346 through the Co-Op.  This year they have quoted me £1,986.06 .  That's a tad more than a 15% increase.  £1640.06 more expensive than last year?  I mean come on despite all the "challenges" that is daylight robbery.  If you price people out of home insurance you will have even more issues.  

Quote from Martin on this website -

"Home insurance costs are up over 10% in the last year, but recent stats are also showing that prices have dropped slightly in the last three months.  Though we've heard of renewal prices having more than doubled for some, with labour and material costs both having risen, making claim costs higher for some insurers, though other insurers may not have been affected as much."

So fair enough things can go up but five times more expensive is a ridiculous rise, especially when you have never claimed either buildings or contents.

All prices were over £400 on most comparison sites although I have now found a quote for £363 which I will go with.  Even on that comparison site it all varied between that £363 and £1024, bar one company that quoted £9998 for a measly three bed mid terrace!!

Part of the problem is that we are 200m away from a stream.  The Environment Agency say we are not in a flood risk area as the stream has never flooded yet some insurance companies claim we are in a flood risk area.  I have avoided those companies in recent years. 

It's like car insurance premiums going up because there are so many uninsured drivers on the roads.  What better way to decrease the number of uninsured drivers than toi increase insurance premiums!

Smithcom - No to be fair I wasn't equally riled that my premium had increased so minimally between 2012 and 2024.  It was £314 in 2008, £344 in 2012, £218 in 2016, £237 in 2023.  Yeah sure you just shop around if your premium with current provider goes up.  Never though have I seen an increase of £1640.06 in 12 months,, surely that's enough for anyone to spit their coffee out!

Max68

p00hsticks said:

dunstonh said:

Between 2012 and last year I hadn't paid more than £300 for Home & Contents Insurance.  Cheapest I could fnd last year was an annual payment of £346 through the Co-Op.

So, a minor 15% increase on £300.     How on earth can you refer to that as daylight robbery?

I think the 'daylight robbery' comment will be referring to the renewal quote of £1986.06, which I make is an increase of 574% on last years charge of £346 ?  I'd hardly describe that as 'minor' increase....

Yes that's what I meant, thank you.

dunstonh

You didn't read my post properly.  Last year I paid £346 through the Co-Op.  This year they have quoted me £1,986.06 .  That's a tad more than a 15% increase.  £1640.06 more expensive than last year?  I mean come on despite all the "challenges" that is daylight robbery.  If you price people out of home insurance you will have even more issues.  

You are right, I missed that bit.

However, an increase like that really means they don't want you any more (you are outside of their target market) and rather than tell you that, they stick a high price on it and know that you will move to another provider.

All prices were over £400 on most comparison sites although I have now found a quote for £363 which I will go with.  Even on that comparison site it all varied between that £363 and £1024, bar one company that quoted £9998 for a measly three bed mid terrace!!

Consider all those with the silly prices as not wanting you.    Many industries use pricing as a passive blocker.  

TELLIT01

Have there been flooding issues in your locality in the past year?  That would seem to be the most likely cause of such a massive increase.  All you can do is get on price comparison sites and look for alternative insurers.

No consolation to you, but my home and contents insurance through Direct Line has fallen for the past 2 years.

Max68

dunstonh said:

You didn't read my post properly.  Last year I paid £346 through the Co-Op.  This year they have quoted me £1,986.06 .  That's a tad more than a 15% increase.  £1640.06 more expensive than last year?  I mean come on despite all the "challenges" that is daylight robbery.  If you price people out of home insurance you will have even more issues.  

You are right, I missed that bit.

However, an increase like that really means they don't want you any more (you are outside of their target market) and rather than tell you that, they stick a high price on it and know that you will move to another provider.

All prices were over £400 on most comparison sites although I have now found a quote for £363 which I will go with.  Even on that comparison site it all varied between that £363 and £1024, bar one company that quoted £9998 for a measly three bed mid terrace!!

Consider all those with the silly prices as not wanting you.    Many industries use pricing as a passive blocker.  

So why wouldn't they want a customer who has never ever made a claim on buildings or contents?  What is their target market?  A customer who claims regularly?  Doesn't make any sense.  Strangely I was with them between 2014 and 2018.  Then they put price up so I moved for two years.  Then they were cheapest in 2021 and then again last year.  You would assume that a customer who never claims is one they would want unless I am missing something!

Max68

TELLIT01 said:

Have there been flooding issues in your locality in the past year?  That would seem to be the most likely cause of such a massive increase.  All you can do is get on price comparison sites and look for alternative insurers.

No consolation to you, but my home and contents insurance through Direct Line has fallen for the past 2 years.

No flooding around my area no.  Never has been here.  Other side of town has had some issues but that's where they decided to build on flood plains!  Was with DL for 5 years but they have been astronomic price wise for me since, up in the 800's mark.  Think they were one of those who claimed the stream was a risk even though the environment agency say not and it's never flooded in the 30 years I have been here.  It just gets frustrating when you have paid literally thousands of pounds over the years for something you never use and yet it still goes up astronomically like that.  If it's a £20-£40 increase you could half understand it but over £1500 increase is bonkers.  

Maybe dunstonh is right, maybe they just don't want me as a customer anymore but as I say above if they don't want customers who have never claimed god knows what their target base is.