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According to Insurance Times, home insurance premiums rose by 32% in Q4 of 2023 compared to 2022. This annual increase was reported across all regions in the UK, with Northern Ireland reporting the highest average premiums and the most substantial annual increase. This information does not come as a shock to us; we saw a similar increase year on year in Q3, too.
Several factors have contributed to the surge in premiums, and as a high-value homeowner, you may be impacted differently by generic household policies.
The rising cost of materials
Over the past few months, the cost of building materials has marginally begun to fall after growing considerably over the four years previous. According to The House Rebuilding Cost Index (HRCI) the price of rebuilding costs, including labour costs and raw materials, rose by 21% from 2022 – 2024.
Delays due to shortages in materials
Delays in supplies mean workpeople are unable to do the repairs in a timely manner. High-value home insurance policies include up to 5 years of alternative cover in a courtesy house while your house is being made habitable again. Delayed repairs mean that you need longer stays in the courtesy house which also increases the value of a claim.
New business discounts disappear due to fair pricing governance
As is often the case, changes to policy, as sensible and beneficial they may be, can often carry unintended consequences. With fair pricing, one such effect is saying goodbye to new business discounts, which previously incentivised customers by rewarding a thrifty shopping mentality.
Rising frequency of storms
Following Storms Babet, Ciaran and Debi insurers paid over £352 million across 36,000 home insurance claims. These were only half of the named storms that hit the UK in the tail end of 2023, alongside a tornado which hit Manchester. The full cost of the property damage caused by the storms is still to be determined but we are seeing home insurance premiums rise as a result of the extreme weather we are growing more accustomed to.
If you have any questions or would like to learn more about our bespoke High Value Home Insurance, please do not hesitate to contact us on 01730 777600 or simply fill out the form below.
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“Sophie was incredibly helpful in arranging insurance for our listed property. We have used Stanhope for a number of years and I would highly recommend them to anyone”
Verified 5 Star Review, March 2024