Time to look for a different insurance firm

Q I LIVE in an Edwardian house. Since 2013, Insure 4 Retirement has insured the property and contents. My cover expires in September.

I found this company on a comparison site and the premium was always around £190 to £220. Last year, it was £211.11.

I have never claimed but because the service seemed good, I kept it going year after year. But the premium for next year has jumped to £410.69, almost double and without any real explanation why, although the renewal letter does state that insurance premium tax has risen from 10 to 12% – but that would only account for a few pounds extra. What is going on? Colin J

A THE most common reason for a substantial increase is you have made a claim. Some insurers seek to recoup payouts by upping what you pay next time so it’s probably not worth claiming for small amounts.

A second reason is they think they can get away with it because you will just accept it, especially if your cover is on a continuous direct debit.

You can sometimes save by becoming a “new” customer of the same insurer.

In your case, it’s neither explanation. When you started, via a comparison site, you bought a “Choice” policy, a cut-down “standard” plan, although it met your needs. This was never explained.

This policy was withdrawn on September 1, leaving you with nearly £200 more to pay for a “standard” plan. Your essentials continue that you want and you get some extras: theft at home by bogus officials such as a false meter reader; losses to medical equipment on loan; and a death at home due to fire or assault produces a £5,000 payout.

Decide if these are worthwhile. If not, it’s back to comparison sites.

Compare the Market has 43 cheaper insurers, with 14 under your 2017 premium – the lowest is £96.75. It’s obviously your choice but paying more may not offer much more protection.