Your Price Explained
You will know that the cost of home insurance varies. What you paid one year might not be what you pay the next. But why does this happen? Insurance is all about risk, so insurance providers constantly analyse and assess everything they can to evaluate this risk. This means that sometimes your price increases and you may not know why. Here's a guide to some of the factors that might affect your price from one year to the next.
How Saga can help
Review your cover - by ensuring your property and cover details are correct we can check you're getting exactly the right cover and you'll avoid paying for more than you need.
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If you've moved house, whether to the next postcode or the next county, many factors can change. Crime rates and the number of claims per household, as well as the house type, can all adjust your price.
If you've added an extension or converted a room, this can change your property's value or its rebuild cost. In turn, this could affect how much you pay for your insurance.
Adding things to your cover, such as legal protection or home emergency cover, will increase your price.
Changing from full-time employment to part-time or retirement means you are at home more. On the plus side, there's less chance of break-ins, but the downside is that there's more opportunity to damage things!
Your home insurance is subject to Insurance Premium Tax, which has doubled to 12% since 2015 and can change with every government budget
Newly published data can affect the cost of your home insurance. This might be public information about reported crime figures or industry research about the number of claims made in your neighbourhood
Repairing damaged homes is becoming more expensive as houses and their contacts are much higher spec. Plus, labour costs to rebuild and refit homes have to be factored in.
If other properties in your area are prone to flooding or subsidence, yours might fall under the same catchment area or be regarded as a similar risk
Insurance businesses have overheads so, naturally, each policy contributes to that. Any increases in the cost of office space, staff wages or operating systems may also affect the cost of your insurance.