Rise in excesses on home insurance policies

Thu, 13 Aug 2009

There has been an increase in the excesses on home insurance policies during the last year and a number of insurers are now applying a £100 excess and some a £200 excess.

A recent report from Defaqto found that the number of insurers applying a £100 excess on home insurance policies rose by 7 per cent in the last 12 months.

Mike Powell of Defaqto said: "There are two reasons for the rise in excess levels. The first is to limit the exposure of the insurer and reduce the number of small claims being made and the second is that consumers are now becoming more acceptable to a higher excess being applicable." Mr Powell added there are many insurers that will give consumers the ability to ‘buy back’ the excess to a level that may be more acceptable.

There has also been a move for higher compulsory excesses, up to £250, for escape of water claims .
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