Low Cost Home Insurance Premiums for the wealthy gets more difficult to find

Supply and demand is a simple economic principle and it would appear that that those with large valuable homes are starting to suffer a shock as low cost home insurance premiums dry up. Insurers once saw the wealthy classes as a good source of profitable business but the “new wealth” don’t play by the same rules.

So how do the tech millionaires, foreign investors and property magnets cause premiums increase to levels not seen for two decades. To start with the wealthy are all around us and not confined to small groups of entrepreneurs or foreigners. If you look at the number of newly made millionaires by the National Lottery or noticed the demand for London property/homes you can understand the rise of wealthy class of people. Not a new class of rich people but a wealthy and economically active group of people. This is the key to the low insurance premium desert as our new wealth group no longer buy brown antique furniture or make do or mend.

My theory is that the “old money” would use their insurance for catastrophe loses and the insurers claims departments were manned by old hands who could spot the genuine from the fake. New wealth is tech savvy and has had insurers falling over themselves to cover their electronic gismo’s, French handbags and carbon everything bikes. These possessions don’t gather dust in the corner, they are expensive play things that get smashed, stolen and mislaid.

The new wealth need to look to the past

Making an insurance claim should be the last choice if you want to keep your premiums low and your renewal options open. the first rule of low cost insurance is no claims = better buying power. With this important principle why don’t you see the effects of a £500 or £1,000 excess, better still cut back the expensive all risks cover.

“Old money” understood the value of relationships. You can’t build a relationship with a computer. Get out of your comfort zone and start calling “proper insurance brokers” for their advice and recommendations. Not only do you get value for money but you stop becoming your own broker and get the expert support your buying power deserves.

Cornerstone is a member of the British Insurance Brokers Association (BIBA) – try us, you may be pleasantly surprised.

Tim Lee (Director)