Unemployed hit with higher home insurance premiums

Story link: Unemployed hit with higher home insurance premiums

A report suggests that the unemployed may be getting a bad deal on home insurance, with Confused.com reporting that householders who are made unemployed can see their premiums rise unexpectedly:

Insurers exploit unemployed with higher premiums

Householders who are made redundant could be hit with a further blow of increased home insurance premiums, new research has found.

A study by Confused.com found homeowners could face higher insurance premiums if they are unemployed.

The price comparison site said this is because insurance firms factor in the likelihood of customers defaulting on payments when they calculate premiums.

Insurance firms also raise premiums for houses that are occupied during the day because they perceive an increased risk of accidental damage.

The last point is especially interesting as, personally, I always presumed that being occupied during the day was a deterrent to burglary, and would therefore offer lower premiums! After all, isn’t an accidental damage claim less likely to cost than a full burglary?