Home Insurance Rises

[12thdomino]

First of all I do feel for those suffering in the recent floods I lived in Carlisle during the floods

However

Does the news of insurance rises because of the floods, not come under the same regulations that a lot of consumers have won bank charges back ie: the unfair terms in consumer contract regulations 1999??

In that it is unfair to charge those that have never claimed to pay for those who have - Please dont get me wrong my heart goes out to those flooded recently, but insurance companies make billions of pounds each year nd increases just mean more and more people especially the hard up won't get any insurance cover

Does this not defeat the object by having less people insured means less money to share out are the insurers pricing themselves out of the market an would it not be better on putting a halt on fraudulent claims

[beccus]

I wanted to write something about the recent price rises mentioned in the press. They will apply to all new policies and renewals taken from Monday onwards. We have been looking at price increases for a while and this is not just a knee jerk reaction to the recent severe weather.

We have based the decision on a wide range of factors, including the fact that it is now more expensive than ever before to repair homes after an insurance claim, and technological advances mean that the items in peoples homes are more expensive.

New customers are considered based on individual circumstances and as many people have said we are using more and more sophisticated flood mapping technology to enable us to be as accurate as possible.

I know that this is a very difficult time and the main focus is getting the help out to those of our customers that need it.

[Darkangelsdelite]

This is something that is affecting insurers across the board. We're having a lot of calls at the moment from our home insurance customers because their renewal premiums have increased significantly since last year (mostly due to the reasons stated above) Sadly it looks as though this is something that is going to get worse before it gets better due to the recent bout of bad weather. All i can suggest for now is if you're not happy with your renewal quotes, ask to speak to the retention dept for your insurer and see what they can do to reduce your quote, some of our brands are price matching aggressively now so its worth a shot.

[harrythehawk]

As an Underwriter who works in the industry I fully expected to see the sort of things written in the press and on the TV after rate increases were announced. Unfortunately, people do have to realise that Insurance is a business and ultimately responsible to shareholders and they are not a charity. Also, the recent increases have been coming for some time, these are not the first floods or storms we have had in recent times and also for the global players events elsewhere have hurt them i.e. Floods in Europe, 9/11, hurricaine Katrina etc. Rating is not only made against where you reside on account of floods but many other factors and the different level of cover involved. I can see why people who haven't been flooded can put two and two together but it comes back to the common pool factor and the more that is taken out of it the more people will have to put in and sure the people who have been affected will now find even higher premiums and increased excesses than those of us residing on top of hills, this is the way the pool can be properly managed to still benefit everybody and keep premiums reasonable. However, as Insurance is a business there is competition and as with everything else you purchase you can shop around for the best deal but the Insurance market is just like any other market I'm afraid that will react in similar ways.

[Trojan1401]

Agree with Harry, as a broker, the insurance market is so soft that rate increases are inevitable especially with personal lines where insurer reserves are depleted. The floods effectively are the straw which broke the camel's back. However with serious competition still out there, people will still find cheaper alternatives.
Beware though, ensure that you compare policy cover as you may not enjoy the same level provided under your existing policy. This goes for motor as well as household.

[Vulture_Bank]

famous quote when increasing prices etc "our prices are just as competive but at higher levels"