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Caring for the elderly? Not with Saga’s 220% price hike | Money

I am 92 years old and live in an apartment on the 5th floor. This block is very secure, with a concierge and fob to access each floor. Last year I insured the contents of my house with Saga for £78, against fire and flood only (the building is insured by Islington City Council at £10 a month). Nothing has changed; however, my renewal estimate for this year is £251.

I’m trying to get to the bottom of this huge rise. I thought Saga was an organization that cared for the elderly. Apparently not.

H.J. London

Rising insurance premiums have become a hot topic, especially car insurance premiums.

Saga Prefecture is testing your loyalty with this 220% increase (according to the latest official data, the cost of home insurance is 1.5% higher than a year ago).

The Association of British Insurers (ABI) said in its defense that the industry paid out a total of £2.55bn in home insurance claims in 2023, an increase of 10% on 2022, mainly as a result of the storm. The average payment increased by 11% to £6,235. ABI said premiums fell in real terms after adjusting for inflation, but average claim costs rose.

Saga says that after investigating your case, “the price offered was as intended based on the details of the risk.” The inflationary environment is “leading to increased cost pressures,” it said, adding: “We always do our best to provide competitively priced products and services.”

According to Confused.com, the average price for the same cover for a two-bed apartment in London is £101 a year, so you should get your customization done elsewhere.

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