Home Insurance price increase

dosh37

I have just renewed my home insurance (buildings + contents).

Last year the premium was £242. Now they want £327 for the same cover. An increase of around 35%!

Naturally I looked on price comparison sites.

On average, it seems that prices have increased by around 25%

How can insurance companies justify this when inflation is below 4%?

When I phoned my existing insurer in an attempt to haggle, I discovered something bizarre.

If I set the maximum contents cover to £100K, the premium works out lower than if I opt for a lower cover e.g. £50K!

Eventually I managed to get the same cover as last year for under £300.

Bettie

Mine has gone down. House and contents. 

This year your price is £145.16

Last year your price was £157.61

ThorOdinson

Maybe something happened in your area that made it go up.

ButterCheese

Yes, don't try and understand the cartel insurance company price increases.  They are supposed to be regulated but in practice are not really.  There is so much data out there now that they can use this to justify increases (and occasionally decreases) in premiums.  But generally, they all claim that everything now costs more to fix and replace, or there are materials shortages due to various things like the middle eastern crisis etc.

To be fair to them, some things e.g. building materials have sky rocketed and that might be one reason.  As mentioned above, it could be that some claims in your post code have gone up so you are deemed more at risk than you were last year.  The best, and only thing we can do is compare prices and go with the cheapest one for the cover you require.

DullGreyGuy

dosh37 said:

I have just renewed my home insurance (buildings + contents).

Last year the premium was £242. Now they want £327 for the same cover. An increase of around 35%!

Naturally I looked on price comparison sites.

On average, it seems that prices have increased by around 25%

How can insurance companies justify this when inflation is below 4%?

When I phoned my existing insurer in an attempt to haggle, I discovered something bizarre.

If I set the maximum contents cover to £100K, the premium works out lower than if I opt for a lower cover e.g. £50K!

Eventually I managed to get the same cover as last year for under £300.

What's inflation got to do with if the UK has bad weather (from an insurance perspective)? Or what has happened to the rate of burglary? 

UK has had couple of years on the trot of weather that causes claims to spike with hot dry summers causing subsidence and stormy cold winters causing floods, frozen pipes and storm damage. 2023 weather claims were almost double that of 2022 with an extra £2.3bn in claims and 2024 increased that again by another £1.4bn

chrisw

Bettie said:

Mine has gone down. House and contents. 

This year your price is £145.16

Last year your price was £157.61

Just had my renewal through, virtually identical figures. The cheapest the comparison sites came up with was £150 for basic 'essentials' cover and higher excesses so I'm sticking with Aviva.

dunstonh

Last year the premium was £242. Now they want £327 for the same cover. An increase of around 35%!

Seems quite reasonable an increase on a policy that is barely making them any money (or may not even be making them money).

How can insurance companies justify this when inflation is below 4%?

An averaged rate of specific items is not how you measure it.

You cannot get concrete for love or money.  Bricks are in low supply.  Wood is just in a spiral of daily increasing prices and trades are in such short supply that those that do it are booked in advance and charge much more than they did.

Then you have had extreme weather events causing an increase in claims.

Bettie

chrisw said:

Bettie said:

Mine has gone down. House and contents. 

This year your price is £145.16

Last year your price was £157.61

Just had my renewal through, virtually identical figures. The cheapest the comparison sites came up with was £150 for basic 'essentials' cover and higher excesses so I'm sticking with Aviva.

I don't ever check comparison sites these days. I stay with mine regardless. I was burgled a few years back plus french doors smashed in. The service I received was absolutely brilliant. Maybe I was lucky but they couldn't do enough for me and took my word for everything that was stolen even though I had no receipts for most of my goods. I had new doors fitted too. 

Smithcom

ButterCheese said:

Yes, don't try and understand the cartel insurance company price increases.  

Bless your heart.   I'm no apologist for insurers, but please note that:

1.   There is a choice of insurers, all quoting their own terms/prices/conditions
2.   All things being equal, there is no obligation/necessity to remain with the same insurer
3.   For many years, premiums remained very level and often reduced in cost.   It's only this past 4/5 years that premiums have been more turbulent.   Partly because of the unintended consequences of regulation, partly because of risk mapping and partly because of sharp increases in rebuild costs/materials.   

Stay safe.

SC

cherryade44

Bettie said:

chrisw said:

Bettie said:

Mine has gone down. House and contents. 

This year your price is £145.16

Last year your price was £157.61

Just had my renewal through, virtually identical figures. The cheapest the comparison sites came up with was £150 for basic 'essentials' cover and higher excesses so I'm sticking with Aviva.

I don't ever check comparison sites these days. I stay with mine regardless. I was burgled a few years back plus french doors smashed in. The service I received was absolutely brilliant. Maybe I was lucky but they couldn't do enough for me and took my word for everything that was stolen even though I had no receipts for most of my goods. I had new doors fitted too. 

Which company was that if you don't mind me asking

Bettie

cherryade44 said:

Bettie said:

chrisw said:

Bettie said:

Mine has gone down. House and contents. 

This year your price is £145.16

Last year your price was £157.61

Just had my renewal through, virtually identical figures. The cheapest the comparison sites came up with was £150 for basic 'essentials' cover and higher excesses so I'm sticking with Aviva.

I don't ever check comparison sites these days. I stay with mine regardless. I was burgled a few years back plus french doors smashed in. The service I received was absolutely brilliant. Maybe I was lucky but they couldn't do enough for me and took my word for everything that was stolen even though I had no receipts for most of my goods. I had new doors fitted too. 

Which company was that if you don't mind me asking

Axa . Buildings and contents