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Daily Insurance Industry News
Wednesday 22nd of May 2019
August 12, 2009

Excess on home insurance edging upwards

by David Masters

Story link: Excess on home insurance edging upwards

Home insurance firms are increasingly imposing a £100 excess on policies, Defaqto revealed this week.

The financial analyst said the number of firms with a £100 excess on home insurance polices rose 7% in the past 12 months.

In addition, a number of insurers have increased the excess to £200.

Many insurers offer the option to reduce the standard excess, Defaqto said, but only in exchange for higher premiums.

“There are two reasons for this,” said Defaqto spokesperson Mike Powell.

“The first is to limit the exposure of the insurer and reduce the number of small claims being made.

“The second, and the more likely reason for the increase, is that consumers are now becoming more accepting of a higher excess.

“Home insurance has previously had low levels of standard excesses, but they have been gradually increasing.”

Defaqto also pointed out a new trend of higher compulsory excesses on claims relating to the escape of water, with some insurers charging £250 excess on these claims.

 

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