Written by: Griffiths & Armour on: 06 Nov 2023
Home insurance costs continue to rise following ‘worst year on record’
The UK home insurance industry has been affected by many significant factors over recent years which have contributed to drastic increases in premiums being charged by insurers. These increases are set to continue, and it is expected that UK insurance prices will continue to rise by more than a third in the next two years.
What is contributing to the rise in home insurance premiums?
Turbulent weather, a rise in claims frequency, high inflation, higher prices for materials, disruptions in the supply, a shortage of skilled labour resulting in delays to complete work and the distribution of raw materials, all continue to drive up claims costs. These increases have to be passed onto the consumer in the form of higher premiums.
It is reported the UK home insurance market has recorded its worst period of trading in over 30 years.
Home insurers are not making money and sustained cost pressures make this a challenging time. According to the Association of British Insurers (ABI ) last year, for a third year in a row, property insurers paid out more in claims than they received in premiums. In 2022, for every £1 they received in home insurance premiums, they paid out £1.22 in claims and expenses.
How can Griffiths & Armour help you navigate these rises?
At Griffiths & Armour we are always on hand to advise on your insurance needs. None of us can predict what may happen in our homes and it is crucial that you work with a broker that understands your bespoke requirements, to ensure you have reliable insurance protection in place.
Although times are challenging, our in-depth knowledge and expertise equips us to manage our clients’ individual specific needs. Our reputation as a market-leading High Net Worth insurance broker means you will always receive the highest professional standards. We will continuously work with you to ensure the most competitive terms are being achieved.
We choose to work exclusively with insurers who deliver a market-leading claims proposition that we can trust and will not let our clients down when the unexpected occurs.
At Griffiths & Armour, you will have the peace of mind and confidence that your insurance policies are designed to safeguard and enhance your lifestyle.
When should I review my home insurance policy?
In the current climate, it would be unwise to wait until renewal to review your current arrangements; your current policy may not be sufficient. The team at Griffiths & Armour is conducting complimentary reviews of current policies and often improving cover whilst delivering premium savings, so do not hesitate to contact a member of the Private Client team for a complimentary review of your own insurance arrangements.
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