Silver savers

By LIZ PHILLIPS FOR MAILONLINE
Updated:

 

THE cost of home contents insurance for people aged over 50 rose by 7% on average last year - more then double the rate of inflation, according the Office of National Statistics. And experts estimate that renewing household insurance is likely to cost 5% more this year following claims caused by floods and storms.

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Allan Truman, of Cornhill Direct, says: 'Insurers are increasing premiums to meet the rising cost of claims, but it is possible for people over 50 to pay much less for their insurance. The over-50s generally stay with their insurer for years. This degree of loyalty can hit them in their pockets.'

There are a variety of ways to slash your buildings and contents insurance bills. You can use an insurance broker to do the legwork for you. Some policies, such as Folgate's and Choices Extra by Royal & SunAlliance, are available only through brokers, who may have special deals arranged for their customers.

Alternatively you can ask your insurer for a discount based on your age. Norwich Union, for example, knocks 17.5% off its premiums for those aged 50 and over, rising to a maximum of 27.5% for pensioners over 65. Royal & SunAlliance discounts up to 20% based on age and claims history. Or you can shop around among the companies specialising in over-50s insurance, such as Age Concern, Saga and Cornhill Direct.

In theory, people over 50 should get a good deal because they are a lower risk than younger householders. Insurance broker Berry Birch and Noble guarantees new customers in that age range 10% off the renewal premium quoted by their existing insurer.

Peter Wright, of BBN, says: 'They are a superb group to insure and should be rewarded through lower premiums. They are responsible and don't claim often. This means we can nail our panel of insurers down on price.'

Local government officer Tim Bowers halved the cost of his home insurance through BBN. Norwich Union Direct quoted him £800 to renew the buildings and contents insurance policy on the home Mr Bowers, 51, shares with his wife Jill. But BBN offered him its 50-plus policy for £386.90. Mr Bowers says: 'I checked out the new policy, and although it is not identical to the old, they were similar enough to satisfy me. And I've got no excesses with BBN's 50-plus policy, which I did have on the previous one.'

A survey of 1,800 of BBN's new customers showed they shaved on average a quarter off the price of renewal premiums. The biggest saving, at 35%, was on policies from Abbey National, which cost £267 on average. BBN was also able to knock 24% off the average cost of Saga's home insurance of £233.70 and 21% off Age Concern's at £150.86.

Age Concern is best for pensioners looking for low levels of cover with a basic policy. It will provide £7,000 contents cover from as little as £18 a year.

BBN's minimum premium is £40, and many insurers' lowest premiums are £50.

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