The shocking truth about the UK’s home insurance market has been revealed by the Financial Inclusion Commission (FIC). The commission which consists of industry experts, peers and Members of Parliament shared that insurance has become a tough bet for many home owners in the UK. They revealed a statistical report which declared that nearly 16 million people in UK are living without content insurance.
The commission has also reported that around 60% of home owners with low wages that are earn less than £15,000 or equal, are living without content insurance. They basically cannot change the contents of their home even when it gets damaged. These are also either low wage earners or young couples that live in rented places and thus, cannot afford home or content insurance.
The report also mentioned that home insurance providers have paid an average of £2,500 to 1.2 million households who claimed content insurance. The FIC report also gave suggestions to improve the home insurance market and to make content insurance affordable for groups that cannot access it. They offered suggestions to offer cheap home insurance to homeowners with lower incomes.
Providers should offer home and content insurance at cheaper premiums to ensure that it is affordable for all households and everyone is protected with a home insurance cover.
Sir Sherard Cowper-Coles, chairperson of the commission, shared that “The findings in this report are a reminder of the challenge we face in furthering financial inclusion. For many, insurance is an unaffordable or unobtainable safety net. Insurers pay out more than £8 million every single day in property insurance claims and its good that this report recognizes the benefits of more people having access to contents cover.
He added that “Contents insurance offers peace of mind to millions of households and can be a financial lifeline when the unexpected happens – whether that is a burglary, a leaking pipe or a devastating fire.”
Reacting to the report, the Association of British Insurers (ABI) stated that the insurance sector is doing its bit in offering affordable content insurance cover to social tenants. However, the take-up is low from the end of the insurance customers. He also hinted that rising Insurance Premium Tax is the reason behind the increase in home and content insurance cover.
He said: “One of the main barriers which prevent people taking out cover is likely to be the squeeze on people’s finances, with disposable household income falling.
Property insurance premiums are currently at some of their lowest levels for more than a decade but repeated increases in insurance premium tax are putting this at risk.”
Considering both the parties, it is still clear that home and content insurance cover has become a costly expense and not many can afford it. Whatever be the reason, it is the increase and skyrocketing premiums that keep people away from buying the cover. However, the best way to get cheap content insurance cover is to compare all home insurance providers, check their terms, premium cost and then zero down on the cheapest content insurance provider.
If you find it difficult to shop around then FreePriceCompare offers hassle free price comparison service. You need to check our site, use our comparison tool, select the cheapest home insurer in your area and switch. We will manage the rest of the process for you. To know how to get cheap home insurance in UK, feel free to connect with us at or call our team of insurance experts on 02034757476.