Which? responds to latest ABI data on cost of home insurance

Sam Richardson, Deputy Editor of Which? Money, said:

"Good quality home insurance is increasingly important - yet customers with these products face some of the lowest claims acceptance rates. While some home insurers' prices are going up, research has found that some are prolonging customers' ordeals by failing to deal with claims in an appropriate manner. 

“Some home insurance customers who can't afford to pay for cover in one annual lump sum, and instead pay monthly, are also being hit by huge rates of interest. Which? research has found that some firms are charging rates of interest comparable to expensive credit card borrowing, despite the risk to the insurer being much lower.

"The Financial Conduct Authority needs to take swift action. It must make clear that insurers squeezing customers who can only afford to pay monthly with excessive interest rates does not meet its fair value requirements, and set deadlines for firms to fix this."

-ENDS-