The subject of home insurance has recently come to the fore once more. After several years during which prices have dropped, most likely due to the lack of demand because of the property slump, this type of premium has now seen prices rise slightly (+1.3%), and, as a result, insurance companies are back offering their wares.
Competition between companies has also accelerated, and, as it the case with similar insurances, the price is often the main reason why one company will win clients over others.
During the property boom years, house insurers could barely keep up with the demand as the majority of people that purchased a property through a bank with a mortgage were required to take out a home insurance policy as part of the agreement. With the crisis, insurers were obviously hit hard.
Consulting agency Global Actuarial has carried out a detailed study into prices currently being charged by home insurance companies and what exactly is on offer for this price. The four companies with the lowest prices on the market at the moment are: Mapfre, Plus Ultra, Reale and Zurich – all fairly well-known names.
The average price charged generally for a home insurance policy for a typical property in a large city, such as Madrid, Barcelona, Valencia, Bilbao or Seville, is around 278 euro a year.
With each of the four companies mentioned previously, the average price is lower than this:
- Plus Ultra: 234€
- Mapfre: 241€
- Reale: 274€
- Zurich: 274€
The consultancy company gathered data for three types of property to arrive at their conclusion: a 70 sq. m apartment; an apartment of 85 sq. m; and a 200 sq. m duplex family home.
The first has 70,000€ insured on the building and 20,000 for contents. The average yearly insurance price offered by insurers is 173€.
In the second case, 85,000€ is insured for the building and 30,000€ for contents. The average insurance policy would be 228€.
And in the final case, with 200,000€ building insurance and 50,000€ for contents, the average insurance policy would cost 433€ a year.
However, many companies cannot solely rely on a low price to capture new clients. Some, more than others, are also very conscious of the importance of offering a wide range of services, and an excellent service at that too.
Some are even offering services like repairing electrical goods, such as kettles, or even distance IT support and assistance with fitting together and putting up IKEA furniture in a bid to stand out from other companies and attract new clients.
Source: www.cincodias.com
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