Hidden Triggers: The unexpected customer factors that could drive up home insurance costs

In today’s volatile insurance landscape, mortgage advisers are increasingly finding themselves fielding questions about rising home insurance premiums. While market wide factors like climate change and inflation are well known, there’s a growing need to understand the customer-specific variables that can quietly inflate costs and lead to some customers struggling to find suitable cover

Here are the unexpected personal and property-related factors that brokers should be aware of when discussing home insurance with customers.

1. Renovations and Home Improvements

Many homeowners upgrade their properties without informing their insurer. Loft conversions, kitchen extensions, or even garden offices can significantly increase the rebuild cost yet if the policy isn’t updated, the customer may be underinsured or face higher premiums when they do declare the changes. If your customers are capital raising at remortgage stage to undertake this type of work it is a perfect opportunity to signpost this and ensure their home is correctly covered 

2. High-Value Personal Belongings

Customers who own expensive jewellery, art, or tech equipment may not realise these items require additional coverage. If not declared, they risk inadequate protection, claims not being satisfied or higher premiums when claims are made.

3. Home-Based Businesses

Running a business from home whether it’s a beauty salon, consultancy, or online shop can change the risk profile of a property. Insurers may charge more due to increased foot traffic, equipment, or stock stored on-site.

4. Previous Claims History

Even if a customer has moved to a new property, their claims history follows them. Multiple past claims even for minor issues can result in higher premiums or reduced insurer options.

5. Security Measures (or Lack Thereof)

Homes without modern security systems such as alarms, CCTV, or secure locks may be deemed higher risk. Conversely, poorly installed smart tech can also backfire, leading to increased premiums due to reliability concerns.

6. Location-Specific Risks

Even within the same postcode, risk can vary. Proximity to flood zones, crime hotspots, or subsidence prone areas can dramatically affect premiums. Customers may not be aware of these micro-risks.

Why This Matters for Mortgage Advisers

Home insurance isn’t just a checkbox it’s a key part of the affordability equation. Brokers who understand the hidden cost drivers can:

• Prevent affordability surprises during mortgage approval
• Build trust by offering holistic financial guidance

In a market where every pound counts, mortgage brokers have an opportunity to lead the conversation on home insurance.

At First2Protect we have access to a variety of products and providers covering both standard and non-standard to advise and guide your customers ensuring they covered for the unexpected.

For more information contact the Business development team on 01392 848856 email: businessdevelopment@first2protect.co.uk or registering via the website: Work with Us - First2Protect