Home insurance providers on the rise

The number of home insurance providers operating in the UK is on the rise, according to recent statistics. Independent research company, Defaqto, found that there are 73% more home insurers now when compared to 6 years ago. While this spells good news for consumers, Defaqto warns the competition in creating a difficult climate for home insurance companies to operate. Since 2004 the home insurance sector has seen a boom in new providers. This can be attributed to the rise in price comparison websites, and also leading supermarkets who have branched into the insurance industry in recent years. The increase in home insurance companies helps keep rates competitive for consumers, although there is a danger that customers will opt for the cheapest price, as opposed to looking at the benefits each policy offers. Another advantage for the consumer with the rise in home insurance providers in the UK is that policies can now be tailored to individual needs and requirements as opposed to blanket cover which was usual 6 years ago. However Defaqto warn that the competition between insurance companies to provide the cheapest rate of home insurance could have a detrimental effect on the quality of cover offered. For this reason, home insurance customers are urged to look at the bigger picture and check that the cover offered suits their needs, rather than opting for the cheapest rate every time.