Make Certain the Debt Advice You Are Receiving Is Accurate
Make Certain the Debt Advice You Are Receiving Is Accurate
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| Make Certain the Debt Advice You Are Receiving Is Accurate |
The average cost of buildings insurance for homeowners increased by 1% last year,
bringing the cost of a year's insurance to little over 205. Contents insurance also
increased, this time by 2%; the typical homeowner now pays 151 for it each year.
Norwich Union, for instance, increased its costs by a staggering 6% last year, while
other lenders are raising prices even more.
The query is, "Why?" Since there is so much
rivalry, you might anticipate prices to be decreasing rather than rising, but
as we will describe later, there are other forces at play.
No. 1: The price of repairing or rebuilding a dwelling.
Prices are rising when the insurance company estimates how much it would cost to
restore your home since labor and building supplies are becoming more expensive.
This is a result of inflation, which also has an impact on the insurance company's
operational expenses. Naturally, insurers must take these costs into account because
wages, bills, and office rent are all rising year.
No. 2: The climate
Whether it is caused by global warming or not, the British weather is becoming more
and more erratic. However, it is true that during the past several years, we have seen a
lot of extreme weather. The hurricane of 1987 was an unusual occurrence, but flash
floods like the ones that occurred in Carlisle, Boscastle, and Helmsley, North
Yorkshire, are becoming more frequent. According to the Association of British
Insurers, the average insurance claim for flood damage might be between $15,000 and
$30,000, significantly cutting into the earnings of the insurance sector. Floods actually
cost insurance companies millions of dollars each year.
Number 3: Burglary
Our homes are filled with expensive electronic devices that may be bought new for a
high price and then sold for a high price, including digital cameras, laptops, game
consoles, and ipods. These valuables are being sought after by burglars, which is
hurting the insurance sector financially.
Burglars choose affluent areas to ensure they get away with the best goods; as a result,
the value of these types of claims is rising as
expensive items like jewelry are taken.
To determine premiums for everyone in a postcode region, insurance firms use facts
pertaining to that area. You will have to pay higher rates if your neighbors have
experienced subsidence or if the region is close to a river that has been known to flood.
Similar to this, it will be considered that you are more likely to file a burglary claim if
people in your neighborhood have had their homes broken into.
A no-claims discount can help offset the annual increase in premiums, but once you
have gone five years without filing a claim, the insurance company caps these
reductions, and you are no longer eligible for them.
Is there a way to stop the price of home and contents insurance from rising?
You should start by shopping around for the best bargain. For the best offers, check
the Internet because most insurance providers provide consumers who purchase
online a discount, typically 10%. If you pay with a direct debit, you will also save
money. Although it may be tempting to accept the renewal estimate provided by your
existing insurance, make the effort to shop around will be worthwhile in the long run.
This is due, in part, to the fact that insurers always reward new clients with the best
offers, thereby penalizing loyal old clients!
Another great approach to lower rates and gain vital piece of mind is to increase home
security. There will be a difference if there are neighborhood watch programs,
exterior security lighting, a burglar alarm, security locks on windows, and industry-
recognized locks on exterior doors. Installing these items obviously costs money, but
they ultimately pay for themselves.
Play the insurance company game, and you'll always come out on top. Shop about, be
ready to switch insurance providers every year, and refuse any high costs. There is
always a better offer available!
