Quote Ref: WS1

Loyal customers paying more for their home insurance

Depositphotos25313133m-2015 (1).jpg

How much are you paying for your home insurance? According to a report by the BBC on the 27th of August 2018, it might be a lot more than you reckoned. 

The need for home insurance

Protecting your home and its contents is an important precaution, of course – and one that is likely to be essential if you have a mortgage, since your lender probably insists on sufficient cover being in place at all times.

Once it’s in place, though, you might be tempted to think that you’ve played your part and just need to renew your policy year upon year with the same provider – loyalty counts, after all, does it not.

The cost of home insurance

Unfortunately, in certain cases, any sense of loyalty might be thoroughly misplaced.

The BBC drew on research published by the Consumers Association’s Which? Magazine on the 28th of August suggesting that customers renewing their home insurance with the same insurer after more than a year were likely to pay an average of £75 (38% on the average home insurance premium) more than any new customer.

Not only that, but the longer the customer had been with a particular insurer, the greater the disparity seemed to grow.

In short, loyalty to your current home insurance provider might be very poorly repaid – especially if you end up paying as much as 38% more for safeguarding your home than any new customer.

Prices at UKinsuranceNET

A feature of any survey-based market research is that there are always exceptions to the general rule.

Here at UKinsuranceNET we are pleased to be able to make just that point.

Here, for example, is an illustration of the prices for home buildings insurance we have quoted to some of our customers who have renewed their policies in the 6 year period 2012 to 2018*:

*Sums insured have been increased in line with insurer annual indexation (what this means is that your insurance benefit is adjusted to keep up to date with inflation).

Example

YEAR

Location

Building Sum Insured *

Annual Premium

     A

2012

Middlesex

£200k

£290

 

2018

Middlesex

£250k

£336

 

 

 

 

 

     B

2012

East Sussex

£136k

£154

 

2018

East Sussex

£170k

£200

 

 

 

 

 

     C

2012

Aberdeen

£130k

£280

 

2018

Aberdeen

£150k

£300

 

 

 

 

 

     D

2012

West Yorkshire

£90k

£147

 

2018

West Yorkshire

£110k

£165

As you can see from example A above, then over 6 years this shows a maximum increase of just £46 on a £250,000 home in Middlesex.

Example B is identical, with a £46 increase on a £170,000 home in East Sussex.

So if you are paying too much for your home insurance or if you have not yet taken advantage of such competitively-priced home insurance, then it is never too late to hop on the bandwagon right now and, as a new customer, ask us for a quotation for insuring your own home.

We are recognised as one of the UK’s leading independent insurance brokers – specialising in the provision of home insurance and every type of property insurance – with a mission to deliver superior service, whether by internet or phone, whilst using innovative technology and back office systems to keep our costs and your premiums low.