The world we know is changing. Countries are at war, the effects of the pandemic are still rippling through society and extreme weather is making headlines around the world. Did you know that all this instability and uncertainty is having an impact on your insurance? The whole point of building insurance is to prepare for the unexpected, yet the future is becoming more and more unpredictable and as such the protection that insurance provides is becoming more and more essential. Just as one example, recent reports show that millions of homes in the UK are at a significantly higher risk of subsidence after months of record-breaking drought. Some insurers are already experiencing a surge in claims as buildings are compromised by the unusual dry ground in which they are built. These kinds of claims are more complex, involve more people and take more time to settle. Extreme weather patterns, along with many other contributing factors, is just one thing that has caused insurance providers to up their prices.
Do Your Research
You don’t have to accept the first quote you get or choose to stay with your current provider when it comes to renewal time. It’s really worth your time to shop around and do your research to find the best deal for you. Don’t blindly accept renewal premiums but challenge them to see if the provider will budge with a little bit of persistence. You can also employ an insurance broker to do the shopping around for you. You’ll likely save more money in premiums than you spend on a broker who will find you a great deal.
Understand The Reasons
When you understand the reasons behind the increase in building insurance premiums it can be a little easier to swallow. You can also determine which factors are out of your hands and which ones are within your control to change. When you find things you can change, you’ll be able to lower the costs as much as you can.
- The damaging effects of climate change. You might not imagine that global issues that climate change can affect your insurance bill, but it plays a bigger part than a lot of people realise. Climate change is influencing weather patterns and causing extreme conditions even in the UK. Floods, droughts, and fires are all on the up due to the consequences of climate change and as a result, building insurance has to increase to match the growing likelihood of damage from natural elements.
- The significant increase in building costs. Due to sanctions placed on Russia, a key exporter of building materials, other sources have put up their prices to make the most of the opportunity. Furthermore, delays in the supply chain ongoing from the pandemic have also caused materials costs to go up. The backlog of building projects that have built up after the lockdowns of the pandemic have reduced the availability of labourers and further caused costs to go up. With this in mind, the value of a property shoots up considerably sue to the cost that would be incurred in the event of repair or rebuilding.
Preparing for the Unknown
The fact is no one can guarantee the future and there’s no way of knowing whether premiums will continue to increase or start to fall over the next months and years. Whatever the case, it’s good to know that there are things you can do to reduce your expenses. Insurance specialists, like Deacon, are there to offer specific guidance and advice in finding the best policy and show you what action you can take to make your life a little easier and your bills a little cheaper.