Insurance premium hike.

[savvygirl]

We've just had our renewal notice for buildings and content insurance from Saga and they are quoting ?1,124 for this coming year - last year it was ?706! We have a small 3 bedroomed house. The premium for contents insurance has increased by 100% and for buildings by around 60%. I was so appalled by this outrageous hike that I phoned Saga and the girl I spoke to said there has been an increase generally in home insurance of around 30%. I asked why the contents had increased by 100%, to which she kept saying "I assure you the quote we have given is correct" - she'd obviously forgotten about the 30% she'd already mentioned. She then went on to say it's because of the subsidence problem and their underwriters, Lloyds TSB, were not happy about it. We did have underpinning done some 20 years ago, so the problem is historic. Anyone who's had a subsidence problem knows how difficult it is to get insurance, so they more or less have you over a barrel. She then added insult to injury by saying "this is an invitation to you, you don't have to take it up if you don't want to"! Of course they know how difficult it is to get insurance cover in these circumstances. Without cover for subsidence it would be difficult to sell. I think it's absolutely outrageous that they can get away with this sort of thing. I'd love to tell them where to shove it but obviously can't. Any sensible suggestions as to what to do?

[KidKruger]

Unless there's more risk to your contents as a result of the subsidence, the subsidence should not be the reason for the contents policy price increase.

[savvygirl]

Kidkruger, that's what I couldn't understand, why my contents insurance had increased by 100%. I kept stressing this point to the Saga rep but she kept saying it's because of the subsidence - it just doesn't make sense. The subsidence problem was so historic that Saga was quite happy to take the risk on 6 years ago. Since then they have changed underwriters who are now Lloyds TSB who really don't like the situation and are putting the screws on! A take it or leave it attitude I'm afraid. I will continue to argue the point - I'm expecting a call back from them within the next couple of days.

[computedshorty]

I used to use Saga for most of my requirments but they have gone up too much, I went on Gocompare and got far cheaper quotes. You might find that you can buy the house policy from one contents from another. My combined insurance is ?192.32.

[Marmora Man]

Three years ago I went to a specialist broker who put me in touch with a specialist insurer that was happy to accept a huilding surveyor's report that our house was not at risk of subsidence following underpinning works. Premiums did go down - it's still expensive but better than being "locked" to one insurer.

I also read at the weekend that most families underestimate the value of their contents significantly - sometimes by as much as 50%. I ran thru' a checklist on the AA website and found that we had undervalued our contents by about 20%, not too bad but could be a real problem if we lost house and contents to say a fire. Am in discussions about increasing value of contents and impact on premiums.

Worth checking I assure you - it was little things we had forgotten to take into account, DVDs - only a couple of 100, but that's almost ?2,000 to replace, books - many many more books - even if 50% are paperback they have a value - 500 books to be replaced comes in at around ?5,000, 25+ pairs of assorted women's shoes - I daren't ask what they cost or what the replacement value is, pictures, ornaments, inherited items of jewellery from Granny, Dad's old watch, . ..... and so on and so on - it was an illuminating exercise.

[Mick Mac]

Buildings insurance is compulsory as is car insurance. Most other insurance we would be better off without but many feel insecure without it. I'd shop around for contents and get the cheapest cover that clearly covers big ticket items but remember you are unlikely to have to claim on it so take that into consideration when evaluating the cost and benefits. Check the small print and if going for a cheaper policy make sure you understand the basis of the cover.

Contents insurance mostly pays out on burglary, I think, so keeping your home secure is the best insurance combined with a basic policy to cover big ticket items.

[savvygirl]

All very helpful advice, thank you. I have considered cancelling the contents insurance with Saga and going elsewhere for that but I've got a sinking feeling that the contents may be tied in with the buildings policy, a combined policy I think they call it, but won't know until their customer service team call me back. They are taking 72 hours to respond to calls, so maybe they have lots of complaints to deal with!

[Mick Mac]

sinking feeling? you better check your insurance is up to date.

[savvygirl]

Wrong choice of words maybe, Mick Mac, but you have brought a smile to my face!

[Sonners]

Savvygirl, it's not just Saga - we had our renewal quote from Halifax a few weeks ago which was for about the same as your new quote and last year we paid about ?700 too. I thought it might have been because we had claimed on the insurance but still thought it was taking the piss.

I looked at Go Compare and ended up with exactly the same coverage from Esure for ?300 for buildings and contents!! So Halifax did me a favour really. I am sure the insurance companies are trying to benefit from the fact that some people will not read the renewal notices and then get tied in at a higher premium.

Try E-sure for a quote!

[computedshorty]

Be careful some of the Insurers automatically renew your policy at the revised rate, if you are not renewing with them Phone them up and get the renewell cancelled, if you even sent your payment by cheque or Debit they do it from stored data.