How has the pandemic affected property insurance?

The Pandemic Effect could have a big impact on the buildings and contents insurance you need. It should prompt all UK owners of high-end and second homes to review their property insurance policies urgently. One striking Pandemic Effect is an exodos from cities to bigger houses in the countryside.

Thousands of people have moved to live and work in larger homes with more bedrooms. With the need to commute gone, properties in the Midlands, the North, and even central Wales have seen some of the greatest pandemic price rises, and Cornwall overtook London as the most popular search on Rightmove.

How do property prices affect buildings insurance?

According to the Office for National Statistics, the average UK house cost £289,099 in May 2022, an annual rise of 10.5%. Prices in London and the nearer Home Counties typically shifted less than 3.5%. Property prices are only very loosely connected to rebuilding costs, which are important for insurance, but these have risen too. The Pandemic Effect on the cost of relevant inputs (from bricklayers to roof tiles) has been gigantic. As we recently reported, even plumbers now cost on typically 67% more. In short, you ought to be asking: ‘Do I have enough insurance coverage after the pandemic?’ 

Does occupancy affect insurance?

The use of many homes changed as a direct result of Covid 19. The wave of home-working prompted many people to buy a second home out of the city, and leave their primary residence unoccupied for long periods. That can have huge insurance implications. As well as the obvious threat of intruders, for example, the risk from mundane situations like a burst pipe is multiplied for second or partly occupied homes. Many average-Joe insurance policies expect homeowners to be at home pretty much all the time, and some are void if you’ve been away for a month or more. Second homes need specialist coverage, too, as does the home office at the bottom of the garden.

Does letting my house affect my insurance?

If you let your other house while you’re not there working, a range of new insurance needs arise. Many policies won’t respond if you’re property is solely or partly rented to a third party, even to an adult relative. Others are void if you carry on business at your home. And going Air B&B could leave you seriously exposed. With Miller’s Private Client team, you get cover which matches your homes, and suits the ways you live in them. You also get the advice and advocacy of an experienced broker who is always on your side. Post-pandemic, many homes are no longer adequately insured, especially under ordinary insurance policies. Fortunately, though, the peace of mind that comes with knowing you have proper coverage is only a few clicks away.

Cover from Miller Private Clients brings the comfort of ensuring the places you love to live will be thoroughly protected with coverage from a reputable insurance company.

It’s available 24/7, so visit us now at Miller Private Clients for an instant quote.