Summary
This article explains why premiums for Home & Contents seem to be { loans } constantly rising - and what you can do about it.
Home and Contents Insurance - Are your premiums constantly rising?
Last year the UK's average premium for
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So what's going on? Every year we see premiums [ Cheap Life Insurance ] rising. Surely with so much competition in the home insurance market, you wouldn't expect to see such inexorable rises in premiums?
Let's consider the situation more carefully.
The cost of repairing and rebuilding houses is a reflection of the rising price of labour and building materials. This means that cost to the insurers of claims under the buildings cover similarly rises. So as their costs rise, so do your premiums. And there's also the indisputable fact that cost inflation also affects the insurance companies own operating costs. Wherever possible, they're bound to add a little extra on for that!
Then there's that lovely British weather. Michael Fish could be forgiven for( mortgage quotations ) believing we don't live in a hurricane zone, but nevertheless it's a fact that storms, and especially floods, are becoming ever more frequent. Flood damage can be particularly destructive with, according to the Association of British Insurers, the average insurance claim ranging between £15,000 and £30,000. And during the last 18 months we have seen particularly destructive floods create headline news at Helmsley in North Yorkshire, Carlisle, and Boscastle in Cornwall. Those events must have cost the insurance companies multi-millions.
The other area where costs have been rising is burglary. The average ( car insurance ) burglary claim has now risen to around £1,400. There seem to be two reasons - firstly burglars are finding pickings easier to come by and move on. Modern family homes are packed with valuable electronic gismos - from laptops to I pods, digital cameras and flat screen TV's. The other reason is that burglars are targeting well-off neighbourhoods more and more.
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