€1250 per year for home insurance

Jim79

My parents home is insured with Allianz. They are getting old and are not as sharp as they once were. By chance i saw that they are paying €1250 per year for home insurance. The house is a modest bungalow of 2500 sp ft approx.

The premises is covered for €317519 & contents is the same value. When i went onto the allianz website for a quick quote the max they would quote contents is 50% of the house value.

Since my parents are paying 100% of contents value does that mean that they have grounds for a complaint for being overinsured beyond the terms of the insurance companies 50%?

ravima

If they have the contents insured for the same sum insured as the building, then they are wasting money.

Even at €150K contents, I'd venture a guess that they would be over insured.

they hardly have grounds for complaint if they contents are overinsured. No one in the insurance company would have told them to insure for that amount. You mention 100% and 50%. Are you reading their policy correctly? I have not come across any policy where teh SI contents is the same as SI buildings (SI=Sum Insured)

best thing to do, is reduce contents SI to a realistic level at next renewal date, or if policy is recently renewed, reduce the SI and get a refund.

StillWaters

I would think they have overinsured the building too. That seems very high for rebuild costs. Contents would be unlikely to be over 50k unless they have assets such as expensive paintings, jewellry etc.

skippy2

Just recently insured my mothers house for value of €400k plus contents of 75/100k for I think it was €650

Change insurer they are being ripped off big time unless they have a house full of valuable antiques.

Tow

Jim79 wrote: »

My parents home is insured with Allianz. They are getting old and are not as sharp as they once were. By chance i saw that they are paying €1250 per year for home insurance. The house is a modest bungalow of 2500 sp ft approx.

Interesting. Last week my 70+ father showed me his insurance renewal with them. They had doubled it up to around 1,300, he rang them up and they claimed the house was in area with a high risk of flooding. No rivers or sea nearby and I have yet to see water flowing up a hill. They dropped the insurance down to 800 (not bad for a phone call), but he renewed it elsewhere for a little over 600.

At face value it would looks as if Allianz actuaries have worked out you can charge long-term elderly customers over the odds with a high probably of getting away with it.