Home insurance is a necessary expense of modern
living, and acts as a safety net against financial ruin due to unforeseen
events. Building and contents insurance provides funds for goods to be replaced
if they are stolen or damaged, and allows repairs to be made if a property is
damaged as a result of fire, adverse weather conditions, or any other event. As
with any other type of cover, home insurance rates vary between providers, but
research has shown that certain members of society may be getting charged more
as a result of their employment status.
The results of the research showed that people who were listed as being unemployed were generally charged higher premiums than other people who were in full or part time work. This was true of car insurance premiums as well as for home insurance. Since most of the big providers offer various types of insurance this appears to be a standard policy to target people who have no regular income.
When confronted with the evidence regarding this apparent trend several insurance providers confirmed the policy and explained the reasoning behind it. They claim that unemployed people are more likely to default on their premium payments due to a lack of regular income. This risk has to be factored into their premium calculations, and as a result they are charged more.
In addition, although it seems obvious that an unemployed person spending more time in their home will reduce the risk of burglary, insurers instead argue that there is an increased risk of accidents occurring. Therefore the unemployed are once again considered to be a higher risk to insure.
These arguments certainly make sense from the perspective of the insurers, however it could equally be argued that charging unemployed people a higher monthly rate for their insurance will make them more likely to default on their payments. As a consequence of the findings of this research unemployed people have voiced their opinion that they are being treated unfairly by their insurance providers.
At first glance it seems that there is little that unemployed people can do about this situation, as insurance companies are entitled to charge whatever they like for home insurance premiums. The ideal solution would obviously be to find employment, but in the current economic climate this is not always possible.
It is important to note that there are many different home insurance providers to choose from, and not all of them charge higher premiums for the unemployed. With just a little bit of work it is possible to get home insurance quotes from many different providers. Shopping around in this way allows the cheapest possible deal to be found, potentially saving hundreds of pounds on premiums each year.
It is also sometimes possible to lower home insurance quotes further by listing your employment status as housewife or househusband rather than unemployed. This often circumvents the policy of automatically charging unemployed people higher premiums. This should only ever be done if the statement is true, however, as providing false information to insurance companies will render a policy void and can even be a chargeable offense.
It is important for the employed and unemployed alike to get the best possible deal on their home insurance, but it is especially important for people who do not have the financial resources to afford large premiums. Only by making each monthly payment will an insurance policy remain valid, so it is vital for the unemployed to find an affordable premium that leaves them covered. With the current practices of insurance companies this is a difficult, but not impossible, task.
The results of the research showed that people who were listed as being unemployed were generally charged higher premiums than other people who were in full or part time work. This was true of car insurance premiums as well as for home insurance. Since most of the big providers offer various types of insurance this appears to be a standard policy to target people who have no regular income.
When confronted with the evidence regarding this apparent trend several insurance providers confirmed the policy and explained the reasoning behind it. They claim that unemployed people are more likely to default on their premium payments due to a lack of regular income. This risk has to be factored into their premium calculations, and as a result they are charged more.
In addition, although it seems obvious that an unemployed person spending more time in their home will reduce the risk of burglary, insurers instead argue that there is an increased risk of accidents occurring. Therefore the unemployed are once again considered to be a higher risk to insure.
These arguments certainly make sense from the perspective of the insurers, however it could equally be argued that charging unemployed people a higher monthly rate for their insurance will make them more likely to default on their payments. As a consequence of the findings of this research unemployed people have voiced their opinion that they are being treated unfairly by their insurance providers.
At first glance it seems that there is little that unemployed people can do about this situation, as insurance companies are entitled to charge whatever they like for home insurance premiums. The ideal solution would obviously be to find employment, but in the current economic climate this is not always possible.
It is important to note that there are many different home insurance providers to choose from, and not all of them charge higher premiums for the unemployed. With just a little bit of work it is possible to get home insurance quotes from many different providers. Shopping around in this way allows the cheapest possible deal to be found, potentially saving hundreds of pounds on premiums each year.
It is also sometimes possible to lower home insurance quotes further by listing your employment status as housewife or househusband rather than unemployed. This often circumvents the policy of automatically charging unemployed people higher premiums. This should only ever be done if the statement is true, however, as providing false information to insurance companies will render a policy void and can even be a chargeable offense.
It is important for the employed and unemployed alike to get the best possible deal on their home insurance, but it is especially important for people who do not have the financial resources to afford large premiums. Only by making each monthly payment will an insurance policy remain valid, so it is vital for the unemployed to find an affordable premium that leaves them covered. With the current practices of insurance companies this is a difficult, but not impossible, task.
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