THE UK has voted to leave the European Union, so what does that mean for your Home Insurance? In short, right now, it means very little. I would argue in the long run it will mean very little again.
Your home insurance will remain in place. It will still offer the same cover and financial support needed if you have a claim. The big insurers are well financed and operating within the Sterling currency. No insurers are going to go pop today or anytime in the near future as a result of this referendum.
So don’t panic, your home insurance is as valid today as yesterday.
If you need to buy Home Insurance then you will not see any change happen quickly. The fact is we work in Sterling, so regardless of shock devaluations in currency, your insurance will not be immediately impacted.
I believe strongly that the financial instability happening today will calm down over the next two weeks and then stabilise pretty close to the same levels as before the referendum. That means we are all riding out a storm that we can expect to pass soon.
Now in the medium to long term, I don’t see a huge difference to Home Insurance prices. Working in the same currency and against the same demand and house price levels, it will remain the same. It could go up or down a little bit, but don’t expect to fall off a cliff or sky rocket to the moon.
So if you need Home Insurance, you can still buy it now at the same prices as before and it will still give the same cover.
The idea that the UK will go through a house price crash may suggest values change but that will not impact on rebuild values that insurance is based on, so no change there either. Indeed, with supply so far behind demand in the UK, it is unlikely that this house price crash would happen anyway!
So keep calm and put your Home Insurance fears to the back of your mind. This referendum result will have little to no change on the industry and your own policies. And if you need to buy Home Insurance, check out The Property Insurer for the best prices and policies in the UK.