Will the EU referendum impact on the cost of your Home Insurance? Will staying in Europe be good or leaving Europe increase the price of insurance? These are my own thoughts on what will happen.
In this case you can expect very little change to your home insurance in the short term. Effectively nothing will have changed.
But what may happen int he medium and long term bears thinking about. We will have a stronger European mandate and anything that comes from Europe will need to be treated seriously. If they bring in new legislation, no matter how inappropriate it may seem, then we will be left adopting it and what it means.
My only other thought is that the costs of running the European bureaucracy are high and only going to get higher. This self feeding machine is getting bigger and greedier for money every year. I personally think it is rife with corruption and wouldn’t be surprised to see Sep Blatter join it as President – that would probably clean it up a bit.
Those additional costs of running the EU will be met by the UK Government and business. The cost will be added to everything we do and that includes home insurance. As costs rise, expect your home insurance to rise as well, to meet the requirements of remaining in the EU. It will be in most likelihood a slow and gradual increase though, nothing shocking or overnight about it.
In this case I think we can expect very little change in the short term. No one knows whether it will benefit or hurt the UK economy. So home insurance costs will remain largely the same. The risks to property will not change overnight.
The savings of not contributing to the EU will certainly help the UK and I personally do not see many negatives to trading with the EU post membership. Do you think BMW will pull out of the UK? not a chance, it’s far too big and valuable a customer and market for them. Trading relationships will change but not by much.
Indeed with more control over immigration and less legislation forced on Britain, costs for the country are likely to drop in the medium and long term and that will be good for the Government.
Overall I think that home insurance will increase by market force if Britain leaves the EU. So if flooding or thefts increase in an area, then home insurance prices will rise.
Britain is a nation with a lot of its wealth tied into property. Either way we choose to vote that is unlikely to change. So make sure you have home insurance in place to protect your most valuable asset.
The Property Insurer