Different home insurance providers 'take different view of risks'

Posted : 16-07-2008

Home insurance providers often have differing views about the level of risk people present, leading them to offer different premiums, it has been claimed.

GoCompare.com suggests that, as such, people should shop around to find the best deals and avoid above-inflation premium costs.

According to the comparison site, some insurance providers are hiking their prices up by more than five per cent following the dent in their reserves caused by the floods last year.

Commenting on this finding, it stated that this is the "last thing" consumers need as they struggle with rising food and fuel costs.

It also notes that premiums may continue to rise as "the cost of claims has been running well ahead of premium inflation for a number of years now".

Meanwhile, writing for Best Syndication, UK Loan Store contributor Joseph Kenny emphasised the importance of home insurance, stating that people will not be able to close a mortgage deal without it.

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