It’s because most people claim on house insurance for anything and everything, so a low excess means you are more likely to claim, increasing the insurance company’s costs.
Putting the excess right up shifts you out onto a much lower risk profile, so not only would their payout be less, the expected number of claims will be a lot lower. In short the insurance company’s perfect customer
Hence the price incentive to have a massive excess. Worth noting that most of the population wouldn’t be in a position to put aside the “saving” for a rainy day though…
Putting the excess right up shifts you out onto a much lower risk profile, so not only would their payout be less, the expected number of claims will be a lot lower. In short the insurance company’s perfect customer
Hence the price incentive to have a massive excess. Worth noting that most of the population wouldn’t be in a position to put aside the “saving” for a rainy day though…