Home Insurance News

Unemployed hit with higher home insurance premiums

admin — Thu, 19 Nov 2009 10:29:02 +0000

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?

Home insurance reviews

admin — Tue, 12 May 2009 13:58:35 +0000

It’s good to see different home insurance products get reviewed, rather than leaving consumers to buy on pot luck, so all the more interesting to see the following on Finance Markets:

Most providers come out well, especially big names such as Nationwide’s home insurance as well as Norwich Union. Barclay’s own house insurance also gives the thumbs up to consumers.

However, a big danger highlighted in the reviews is that too many consumers are shopping on price alone, and then act surprised when they buy cheap only to find it’s at the expense of service quality.

Also, ensure you don’t buy on price alone, and instead make sure you have all of the cover that you need.

Flood strategy agreement reached

admin — Sat, 12 Jul 2008 17:45:42 +0000

The ABI and Defra have both reached an agreement on planning strategy for flood prevention:

Insurance Daily: ABI and Defra agree long-term flood strategy

The Association of British Insurers (ABI) has reached an agreement with the Department for Environment, Food and Rural Affairs over a long-term flood plan.

Both organisations have made a commitment to improve understanding of flood risk, while the Government implements a strategy for flood prevention and future policy and funding.

This has to be a good thing, because without this agreement, the ABI was basically supporting the withdrawal from properties at risk from flooding.

Instead. the ABI will even support insurance provision for homes which remains at a high risk of flooding, so long the as the government puts in place flood prevention measures within a 5 year period for that area.

Interesting, but let’s see what happens if this is tested, and thus tests the relationship between the insurers and the government.