BISF House continue to hear stories regarding rising building insurance quotes for BISF houses.
Whilst we are fully aware that insurance renewals are rising in general for all UK homes but we have been astonished to hear that some insurance companies have been subjecting BISF home owners to some roof raising price increases.
We have decided to conduct our own research into building renewal quotes using the price comparison service Go Compare. it should be noted that when using any price comparison site, the quote given is NOT final until you have supplied all details required to the company concerned.
For our research we chose to insure a BISF in Birmingham with an estimated resale value of £180.000 & a re-buid value of £151.000.
Our fictitious homeowner is a Full Time Retail Sales Assistant. The property is in good condition and has central heating together with 5 lever mortice locks fitted to front and rear doors. The property also has a garage / outbuilding and the owner has no previous claims in the last 9 years. The area is in a neighbourhood watch area but no alarm is fitted. No voluntary excess has been selected.
More importantly the below quote is for a pre-fabricated non combustible house with a steel tile roof. (Not Corrugated Asbestos Sheeting).
Below you will see the cheapest 7 quotes based on the information we supplied.
We then conducted the exact same search changing only the roof construction type from Tile to Asbestos sheeting.
There was a marked difference in the lowest price quoted. From £122.66 offered by Swintons (Its4me) brand for our tiled roof property compared to £211.95 now offered by Broker King for the Asbestos roofed property. A huge price difference of over Â£89.00! Even more staggering was the highest quote of £483.71 which was offered by Kwik Fit including a £200 policy excess.
Not to be put off we conducted the exact same search via Compare The market.com and found the lowest quote for a BISF Asbestos roofed property to be £149.72 offered by Autonet Home Insurance but beware that paying via installments adds an extra £15.00 to this price.
We then conducted the exact same search now changing the property details to a standard brick constructed house with a tile roof. The quotes returned below were substantially cheaper than the asbestos roofed BISF property but only around £27.00 cheaper than a BISF property with a tiled roof.
During this comparison, we found that the quotes supplied for a prefabricated house with a Tiled Roof‘ were indeed more expensive than their traditional brick counterparts but the price gap was surprisingly less than we had anticipated. Taking the lowest quote from Budget into consideration there was a price disparity of around £30, which on the surface shows only a small perceived risk liability from some insurers.
However insurance quotes for prefabricated house with a ‘Asbestos Roof‘ were considerably more expensive, showing a higher perceived risk. Risk is of course the driving force behind any insurance quotation and corrugated asbestos does indeed have known risk factors.
What we were not prepared for in our first test was the further 6 pages of search results from GoCompare, listing companies who state that they do not insure pre-fabricated non combustible properties. Even more surprising was the fact that when the asbestos roof was included in the property details only a paltry 13 companies returned quotes. Many of the companies not willing to offer insurance were in fact amongst the biggest players in the home insurance market and one could wonder which these companies share the same underwriters.
As always, it appears that shopping around is the best option but we stress that you should check and double check the quotes supplied to you in your own search and even telephone the company to confirm that they insure Pre-Fabricated Non Combustible Properties. We have heard instances where they have stated that they do but when the policy documents arrive they wrongly classify the building as Traditional Brick construction. It is up to you to check your construction type is correct. Not doing so could render your insurance void in the event of a claim.
When requesting a quote from many of these comparison sites the majority of people fail to enter the correct re-build cost for their property. The re-build cost is not the same as the current sales value and is often a lot lower. Many people think the opposite and enter a re-build value that is much higher than the current market value of the house. This will only increase your premiums!
Before you enter this type of information obtain a rough re-build value through the BCIS The Building Cost Information Service.
It is a free service with a very simple registration process and could well help you save on your insurance costs.
We list below the some of the insurance companies who state according to GoCompare, that they do not insure Pre-fabricated buildings as this information may be of benefit to some.