The home insurance renewal offer has gone up in price, (considerably) from last year “in line with the cost of living and inflation”. Uhm, did I read that correctly! As I recall, we had a miniscule amount of time when we were sitting at deflation, other than that, we are constantly being told that the cost of living has gone down, the global economy is not so buoyant either and that the Bank Of England base rate has remained at a steady all time low over about three or four years.
I phoned three insurance representatives who insisted on babbling through verbal pro-formas, in the nicest possible way, expecting me to absorb the data they have visible and I do not. Links to policy summaries and policy wording would balance up the odds.
|Knowledge Is Power|
The best deals for utilities and insurances are to be had as new customers. Inertia is expensive. Loyalty has become a delightfully old fashioned concept. I’m sure this must have led to the development of a nation of economic tarts. This week I have taken two major ‘tart’ decisions and now, I have spent hours making home insurance comparisons online. Best prices mostly reflect base line insurances. Watch the prices jump and the exclusions pop up as you add extras.
|Is it worth it?|
The comparisons show that most companies are charging the same level of compulsory excesses for major and structural risk, in addition to any voluntary excess. The more excess you volunteer to pay, the more the premium reduces. Variations arise in the quality of ‘extras’ and exclusion clauses. This is where the customer would benefit from reading what’s on offer. It looks like a couple more phone calls have to be made. I am beginning to to feel inertia setting in. It’s not easy being an economic pick-and-mix tart.