Free Contents Insurance – no kidding??

So I sat around on the early part of New Years Eve thinking about ‘What on earth to write of interest’ about insurance in the UK as we enter 2009.
No I didn’t, I’m not that sad! but I couldn’t help but notice the massive TV ad campaign being run by Norwich Union offering free contents insurance up to £50000 if you buy your buildings cover through them.
Well that made me sit up and think – What? and Why?
The focus of Home Insurance over the last few years, especially sales on the Internet from many of the major brands have been the opposite, offering unlimited building SI’s cover to attract the contents cover.
So OK blanket unspecified covers up to 50k of contents, but surely the buildings rates have got to reflect the difference? I haven’t tested the premiums yet but maybe NU are selling it cheaper?
So why are they doing it? Well obviously to target a specific sector and increase their book of home insurance business. Maybe they think people will be cutting back on contents insurance during a recession as a luxury item not imposed by mortgage or other conditions upon homeowners. Most likely they think that all that bank buildings insurance business is up for grabs!. Perhaps this is the final stage of NU becoming a totally direct insurer before it becomes re-branded as Aviva (soon to be!! – have you seen those stupid ads all over London?). I suppose they’re also finding it extremely difficult trying to sell their traditional products in this market and think Home Insurance is a soft touch…hmmmm.

So anyway I thought no more of it and carried on drinking and then at the next commercial break – flying pigs? Nope. Just More Than giving away contents insurance for free and guess what – up to £75ks worth.

Wow Happy New Year! We have Free Contents Insurance WAR!!!
Happy v Lucky !

At least the More Th>n offering seems to make good business sense. £75k is the bottom end of the high net worth contents and home insurance market and the large buildings will pack a fair premium with plenty of opportunities to cross sell to the HNW clients. Does one size fits all work in the UK home insurance market? Others will probably have jumped on board the free contents insurance band-wagon before I’ve finished this article, but we remain sceptical until we’ve checked out the devil in the detail. Let us know your thoughts!

At insurance blog we think if you’re a high net worth customer you are more inclined to seek specialist and personalised home insurance cover. That’s why we recommend you take a look at Hiscox Home Insurance before you renew or move from that annoying bank.

Hiscox Home Insurance is comprehensive and specifically designed for people with higher value homes and possessions.

When choosing home insurance a customer can feel certain with Hiscox because:

• No policy available direct has better cover, as standard
• Hiscox is a solid and trusted company, dating back to 1901

Great reasons to choose Hiscox

1. Hiscox home insurance has been awarded 5 stars from independent market researchers, Defaqto, for the third year running
2. Hiscox are one of the few direct insurers offering ‘all risks’ cover, meaning minimal exclusions, maximum cover
3. Contents covered inside the home and when temporarily away anywhere in the world
4. Buildings cover automatically includes accidental damage
5. No need to list every valuable on your policy worth more than £1,500
6. 24 hour emergency cover (e.g. for blocked drains).

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