You’ve probably become accustomed to carefully monitoring your energy bills, with a view to switching whenever you spot a better deal from an alternative supplier - but have you applied the same logic to your home insurance provider?
According to the official energy industry regulator, it is about time you did just that, says the Sun newspaper in a story dated the 18th of January 2018. According to the regulator’s spokesman, many insurance companies are charging its loyal customers – those who have renewed their house insurance policies with the same insurer for at least the past three years – as much as twice the price for new customers.
The practice amounts to what the Sun has branded a “loyalty tax” and has attracted the concern of parliament’s Business and Energy Select Committee.
The price of home insurance
Evidence of potentially unfair treatment of existing customers by some insurers follows hard on the heels of reports earlier in the year of a general increase in the cost of house insurance.
On the 24th of August 2017, the Express newspaper revealed that average premiums had risen by some 7% in the previous year – more than double the prevailing rate of inflation – pinning most of the blame for that rise on the increase in Insurance Premium Tax from 10% to 12%.
For many homeowners, home building insurance is an inescapable requirement. It is a condition of practically every mortgage that adequate insurance is maintained by the borrower at all times and is equal to at least the outstanding balance on the loan. It is a condition imposed to protect the mortgage lender’s interests in the event of a serious accident (such as a fire or explosion) resulting in the total loss of the property.
Home insurance protects the structure and fabric of the property against such major risks as fire, explosions, impacts (from vehicles and fallings objects like trees and heavy branches), storm damage, vandalism and theft. The total building sum insured is typically equivalent to the estimated current cost of reconstructing the property in the event of a total loss.
Many homeowners complete their house insurance by combining building insurance with protection that also covers the contents of their home against theft, loss and damage.
Building insurance also typically includes indemnity for claims made against the property owner’s liability for injury or damage suffered by third parties such as visitors to the property, neighbours and members of the public.
At UKinsuranceNET 9/10 of our home insurance customers renew with us
Here at UKinsuranceNET, we always search high and low for appropriate insurance solutions – matching our customers’ needs and requirements to suitable products, with competitively priced premiums.
We know, too, that our existing customers are just as sensitive to such competitive pricing as any new ones we attract – and that is yet another reason why nine out of ten of our customers renew their home insurance policy with us year after successive year.
Why not get in touch today to see how we can help with your home insurance needs? Call us today on 01325 346 328.