Despite the worst winter weather in decades sparking a huge number of home insurance claims due to flooding, the average price of home insurance has fallen by over 5% in the first months of 2014.
This seems to contradict many industry expectations of rising cover costs in the wake of billions of pounds paid out to those affected by flooding, as well as the new government initiative to build up a flood emergency protection fund through insurance premium payments.
According to research by the British Insurance Brokers’ Association (BIBA), the falling prices are due to an increased level of competition in the market. Compared with the same months in 2013, premiums are 5.5% lower in 2014.
They’re also falling due to insurance companies working hard to reduce their own internal costs, according to BIBA. Another factor causing prices to fall for home insurance is savings elsewhere in the insurance market, such as reductions in the numbers of uninsured drivers on the roads.
The news that premiums are falling is good news for all policyholders, but a BIBA spokesperson was quick to point out that it is the obligation of the people buying the policies to make sure they are comparing the different prices and policies on offer. Increased competition means that all of the major insurers as well as those offering more niche products are designing policies to more accurately match the needs of their customers.
So even if your renewal letter drops through the door and the price quoted is the same or less than last year, you could be getting a better deal elsewhere. Shop around and ensure you are getting the best deal for you.
We have a real passion for making sure people get the cover that’s right for them. We’re driven by a desire to help you find not only the best value insurance, but the right cover for your individual needs. For more information speak to one of our experts on 0203 014 9300 or email firstname.lastname@example.org