UK households face £1,076 bill in post 'but don't legally have to pay it'

James Rodger
·2-min read

UK households with home insurance have been warned renewal quotes have skyrocketed by a staggering 42 per cent on average. Craig Hosking of Towergate Insurance warned the Guardian newspaper there has also been a rise in claims, and more insurers have now left the market.

“Homeowners are increasingly aware of their insurance cover and can be more likely to file claims for smaller damages or losses,” he says. “This rise in smaller claims can add administrative costs, which are often passed on to policyholders.”

He adds: “The departure [of some insurers from the market] has reduced the number of providers, leading to decreased market competition. With fewer insurers offering coverage, homeowners face a more limited selection of policies and potentially higher premiums.”

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It comes after some received renewal notices of £1,076. Home insurance isn't a legal requirement, so some might want to save money and not get a policy. Chelsea Shakespeare, a manager at brokerage Adrian Flux, said: “A change in behaviour is also playing a part. It is more common to claim on insurance than maybe it once was – perhaps, in part, due to the cost of living, with homeowners not having sufficient reserves to avoid having to claim.

“There’s also an increasing trend of younger generations being less savvy with DIY. This might be impacting the ability to fix some minor issues that others may have been able to a long time ago. The need for more houses is also forcing many to be built in flood-risk areas and, again, this trend is no doubt impacting difficulties as a result of stormy weather.”

Louise Clark at the Association of British Insurers (ABI) says that anyone looking for insurance across the country amid the Cost of Living crisis should shop around. “Insurers appreciate the strain many household budgets are currently facing," she said.

"Despite the rising cost of raw building materials and labour, they remain committed to continuing to offer competitively priced home insurance,” she told the Guardian newspaper.

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