Insurance premiums going through the roof

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    Insurance premiums going through the roof

    Those seeking renewals of buildings policies will find that insurers are taking a much tougher line especially where there have been chunky losses and premia are rising dramatically

    A broker put it to me this way. In 2020 insurers have made negative income on its investments therefore to be able to meet claims it is having to raise premia.

    After years of soft markets we are now in a very hard market.

    We have one block where in 2019 there was an escape of water claim that ran to eleven thousand pounds Water was pouring through the ceiling from a flat where the leaseholders had gone away for a week. Extensive damage to the flat below and the one below that.

    The premium is going up by thirty per cent. Brokers said that they offered the risk to several of their panel insurers who either declined to quote or were even more expensive

    #2
    Oh well, 'twas ever thus with insurance.
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

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      #3
      A lot of people will be shocked by the rise in premium that will hit them in the next few months

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        #4
        My cats pet insurance is now higher than my critical illness cover and life insurance!

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          #5
          Yes like everything prices will go up, in your case, it would be the leasholders who will be paying for it not the freeholder through the service charge.

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            #6
            Quite often a freeholder will own a flat or two in its own block. Former's porters flat; flats formerly let to sitting tenants, and so forth

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              #7
              Our excess have been increased, the 'escape of water' one is now 5K from £250 all others have doubled. This is a mixed use property all sold off on long leases. we have a feeling our landlord has had the insurance declined by the long standing insurer and we now have some unknown underwriter, the policy is in the brokers name but the insure is named as Travelers insurance /Aegis Ltd. Would that be two companies? i cant link them. Would there be any way of investigating to see if insurance has been declined? this would explain the high excess's. The premium remains about the same.
              Thanks

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                #8
                I think the present insurers are perfectly reputable. I cant see that there is a way of ascertaining that the previous insurer declined. Companies are fickle and they do from time to time exit specific types of cover.

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                  #9
                  desamax,

                  More likely there was a big claim and the renewal went up so the only way to get reasonable cover was to accept a high excess.
                  You can ask for claims history but I doubt they would tell you it had been declined, they don't normally decline renewals,. Just put price up so much it's not realistic any more.

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                    #10
                    Just been getting quotes for my student flat. I can’t get anything below £ 380. Also the comparison sites are not quoting for me, just collecting my data and saying they’ll call. This is definitely tougher than in previous years.

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