We have written previously surrounding inflationary pressure on the economy in the aftermath of COVID-19 and the importance of maintaining adequate property sums insured.
Unfortunately we continue to see the impact of steeply rising inflation.
The Building Cost Information Service, which calculates the House Rebuilding Cost Index for the Association of British Insurers, shows an average annual percentage increase of 17.9% from June to August 2022.
In addition the Retail Price Index (RPI), which measures the change in cost of retail goods and services, currently shows an annual percentage increase of 12.3%.
Renewal Prices Face Significant Increases
The insurance market and indeed Folgate continue to react to the steep increase in these inflationary factors, by adjusting index linking rates to assist our policyholders in maintaining adequate sums insured.
We can therefore advise that the following index linking rates apply to all Folgate renewals effective 12/09/2022:
Whilst we take appropriate steps to help policyholders maintain an adequate sum insured, by automatically index linking buildings and contents sums insured at renewal of our policies, it is vital that sums insured are adequate in the first instance.
Ian Russell, Group C.E.O, said:
” We are in times where inflation is at a 40 year high and we will continue to follow indexation increases. Brokers need to remain vigilant and ensure their clients are adequately insured through these tough times ahead. “.