Buildings insurance increase

[ElectronicFur]

Our insurance renewal came in, with a 29% increase! We've never made a claim. Most of this was an increase in the buildings insurance.

I realise building material costs have increased, but has anyone else experienced massive hikes like this?

 

[Stevers]

We've been with LV for a long time now, and with no drama at renewal (in December) so far. Time to shop around when this happens - you're insurers could be trying it on.

 

[ElectronicFur]

LV won't insure us as we have too many rooms that they would classify as bedrooms, even though they are not. Then they palm you off to their specialist insurance arm, which charges a lot more...

 

[fernicarry]

I increased the excess on my buildings insurance to the highest possible which brought the premium down a couple of hundred. I figure that the only time I'll claim on buildings will be when the excess is a rounding error.

Not all policies offer a separate excess for contents and buildings, and remember that things like basins and built-in glass hobs are considered part of the building not the contents. I could walk away from most of my contents if I had to. The sentimental stuff can't be replaced for any amount of money anyway and the rest is just stuff.

Forget added extras like emergency cover. It will be practically useless if you read the fine print.

Its been stated on here a few times, only insure the losses that you can't afford to absorb yourself. Tree branch falling through my roof, yes, it'll be an unwelcome set back, but probably won't bankrupt me. Tree branch falling on the neighbour's head and causing life changing injuries, I'd want the insurance company's lawyers working really hard to minimise that public liability pay out.

 

[ElectronicFur]

Our excesses are already at the max they allow Did that a few years ago, and it did make a big difference.

I think one of the problems is that they increased the rebuild cost by 18% this year. Not sure what inflation figures they use to calculate that big an increase.

 

[Stevers]

LV won't insure us as we have too many rooms that they would classify as bedrooms, even though they are not. Then they palm you off to their specialist insurance arm, which charges a lot more...

When our kitchen was in the basement we had six bedrooms (two on the ground floor), so that could be an issue. LV also wouldn't re-insure my parent's house once I owned up to it once being underpinned, so they probably won't insure anything in any way out of the ordinary. We shopped around and got cover via Intelligent Insurance for that one. We've never claimed on the house insurance and so always go for maximum excess.

 

[Lacan07]

I got my renewal sent to me a few weeks back and it yes they hiked it predictably. I can cut it by half if I move elsewhere but whats annoying is I seemed to be signed up for 'auto-renewal', which I think was mandatory at the time. When I went to my account online I couldn't find the button to turn it off for love nor money, despite all the messaging telling me I could. So I spent 30-40 mins waiting to get through to customer service to tell them I intended to lapse the insurance. When I quizzed 'Cathy' on the other end of the line she just went 'hmmmnn'.

Later I discovered on their website that 30 days before the renewal due date you're unable to do anything to your policy online!! (In fact auto-payment begins 5 days before the due date and cannot be stopped!). Bear in mind I didn't receive my renewal notice (email in my case) until 30 days before renewal. The slimy gits!! I wonder how many people they've caught out with this sleight of hand.

 

[Cubist]

The slimy gits!! I wonder how many people they've caught out with this sleight of hand.

Seems to be more common than I thought - I was caught out a couple of years back for a 'Car Breakdown' policy I had taken out as a 'temporary' need the previous year!

 

[Lacan07]

Seems to be more common than I thought - I was caught out a couple of years back for a 'Car Breakdown' policy I had taken out as a 'temporary' need the previous year!

When I called yesterday I had the distinct pang of paranoia about whether she would actually stop the auto-renewal and later deny the conversation ever happened. Confirmation letters are sent out within 7 days (really cutting it fine), there's no confirmation email sent for this rather annoyingly and, despite asking, no reference number for the call / conversation. All I have is her word for it. I figure if they go to such lengths to avoid people cancelling then they're not above lying every now and then. I got stitched up by Virgin Media in similar fashion many years ago. Its one of the reasons I try and avoid auto-renew.

 

[a twig]

If you have taken out a policy elsewhere and then your previous auto renews, then your previous have to cancel and refund you when you inform them.

 

[Cubist]

When I called yesterday I had the distinct pang of paranoia about whether she would actually stop the auto-renewal and later deny the conversation ever happened. Confirmation letters are sent out within 7 days (really cutting it fine), there's no confirmation email sent for this rather annoyingly and, despite asking, no reference number for the call / conversation. All I have is her word for it. I figure if they go to such lengths to avoid people cancelling then they're not above lying every now and then. I got stitched up by Virgin Media in similar fashion many years ago. Its one of the reasons I try and avoid auto-renew.

I'm assuming a Direct Debit payment(?)| - I stopped that on-line at my bank before payment was due, as well as informing the insurer I no longer wanted the policy - the following year, darn it!!

Oh, forgot to mention - if the original purchase was by credit card then you can usually call them to cancel future payments too.

 

[mattyb]

Yep ours hiked significantly this year. Did the typical shopping around to find a better deal (and found one) but still significantly more expensive than last years.

Asked the guy at the company 'how people are supposed to afford these kinds of hikes' and he gave the really helpful advice of 'have you considered moving'.

...cheers mate.

 

[mattyb]

I'm assuming a Direct Debit payment(?)| - I stopped that on-line at my bank before payment was due, as well as informing the insurer I no longer wanted the policy - the following year, darn it!!

Oh, forgot to mention - if the original purchase was by credit card then you can usually call them to cancel future payments too.

Apologies for being totally off topic, but where are you based @Cubist? Your photo looks a similar construction to my parents, who are also Herefordshire/Shropshire boarder.

 

[ElectronicFur]

Well, I've shopped around and most cheap ones won't cover us due to number of bedrooms or the rebuild cost.

Also I found out the index linking most insurers use is the BCIS house rebuilding cost index, which is currently showing an 18% increase...

Negotiated current insurer down a little, still a 22% increase. But it the cheapest, so just had to settle for that.

 

[Cubist]

Apologies for being totally off topic, but where are you based @Cubist? Your photo looks a similar construction to my parents, who are also Herefordshire/Shropshire boarder.

Hi Matty, Its a fairly common and simple timber frame design and there are many similar in the area. Ours is a couple of miles outside Orelton near Ludlow and Leominster.
Cheers,
Cubist

 

[a twig]

Those rebuild cost indexes can be pretty wild, our insurers calculator came out with a rebuild cost of almost £700k for a 3 bed cottage…

 

[Lacan07]

If you have taken out a policy elsewhere and then your previous auto renews, then your previous have to cancel and refund you when you inform them.

Where did you here this Twig?

 

[a twig]

From direct experience with both car and house insurance. When companies have auto renewed and I’ve rung up and said I’ve insured elsewhere they have always apologised profusely and refunded in full, 3 separate cases now.
I don’t think you are allowed to be double insured (no citations for that though!) so effectively they have then sold you an invalid policy.
Happy to be contradicted but that’s been my experience

EDIT: Don’t think it’s a legal thing, probably contractual as I can’t imagine many insurance companies want the legal wrangling with a competitor

 

[Cubist]

Those rebuild cost indexes can be pretty wild, our insurers calculator came out with a rebuild cost of almost £700k for a 3 bed cottage…

They always get us both coming and going. They penalise us if we under-insure AND if we over-insure; but do not tell us whose opinion they will definitely trust!

 

[jdsnape]

we're buying our first thatched house so have been playing the insurance game. The thing I have found that I don't understand is that increasing the excess makes a far greater difference to the premium than I expected.

For example, one quote was £1500 with the standard £200 excess, with an excess of £1000 it comes down to £900. So in two years I'd have saved enough to have paid that back.

NFU was even more dramatic (and expensive!) - with the standard excess it was a shocking £3600, with an excess of £1000 it came down to £2400 - saving more than the excess would be??