According to industry experts, claims made for home improvements has generated a stir and crisis in the UK home insurance market. As per the reports of EY, the UK home insurance sector would make losses in 2018 as the cost of home repairs increases. Home insurers claim that the rise is due to the increasing repair cost. There are maximum cases of water leak damage, which has become expensive than previous years. The low quality cheap plastic pipes are the cause of leaks and thus frequent repair cost are the biggest reason for increase in home insurance cost.
As per statistics, the cost of repairing water leaks has increased from £1,750 in 2013 to any amount more than £2500. The home insurance market seems to be crumbling due to skyrocketing amounts that it is getting paid for claims. Home insurance provider Esure confirmed that it has faced a 14% fall in number of policies in the first three quarters of 2017.
The Esure chief Stuart Vann stated that “We remain disciplined in home, as current market conditions do not provide opportunities for profitable growth. The higher costs will eventually feed through to premiums, but that hasn’t happened yet. The market will have to wake up, and when it does we will be able to take advantage of it.”
Prominent home insurance providers claim that the apart from the repairing cost, it is the IPT that pushes the cost of insurance premiums. Nonetheless, they are hopeful that the market will bounce back. As the increase in premiums is due to rise in Insurance Premium Tax, top insurers are trying to convince the government to stop further increase in IPT. The government has not given any statement to minimize the home insurance cost but industry experts suggest shopping around and switching home insurance providers as the best way to get cheap home insurance premiums.
As per giant home insurance provider AA, there is a 3% rise in the combined home and insurance cover than last year. However, they also blame this on the Insurance Premium Tax which can lead to further increase in home insurance premiums in the near future.
In a nut shell, customers can expect higher home insurance premiums in the coming years. In addition, there are reports that insurers charge higher premiums from loyal customers. To combat this behaviour, customers need to compare home insurance cost offered by various insurers and switch to cheapest home insurance provider. The same hold true for content insurance as market trends show similar condition in both cases.
If you are tired of paying higher premiums and are looking for cheaper home insurance providers then choose FreePriceCompare price comparison services. We suggest the cheapest home insurance quotes online so that our customers can switch and save. To utilize our free services, visit us at https://freepricecompare.com/home-insurance/ or call our team of price comparison experts on 02034757476.