-

Inflation

Putting things right costs money and sadly these costs tend to go up every year. These include building materials and labour. (Generally the price change is between 1% and 5%)

-

You are more experienced

We find that the more experienced customers are, the less likely they are to have incidents around the home. We will take this into account in your price. (Generally the price change is between -1% and 1%)

-

Claims

Where No Claim Discount is a feature of your policy, if you haven’t made a claim in the last year, we will give you a discount at renewal, until you reach the maximum amount. However, if you have needed to claim, your discount will reduce, unless you have bought No Claim Discount protection. (Generally the price change is between -14% and 9%)

-

Changes

You may have reviewed what you are covered for in the last year, and made some changes, such as adding or removing Accidental damage cover. Your price this year will be based on the new details and may be higher or lower as a result. (Generally the price change is between -24% and 17%)

-

Tax

For every £100 premium on policies which start before November 2015 you pay an extra £6, which goes to the Chancellor of the Exchequer. For policies which start from November 2015 you pay £9.50. This is called Insurance Premium Tax.

-

Removal of introductory discounts

We offer introductory discounts to attract new customers. These offers are removed, not all in one go, but over a number of years, as we think this is the right thing to do. (Generally the price change is between 0% and 10%)

-

Prediction of future claims

We are always trying to improve our understanding of what may happen in the future. This means our prices will change over time as we learn more. Your price could increase or decrease due to this. (Generally the price change is between -17% and 16%)

-

Future improvements

Extra increases are required so we can make a profit. This is put back into our business to develop and improve the service we offer to you. (Generally the price change is between 0% and 12%)

-

Claims

This is how much it costs to help put things right when something goes wrong.

-

Costs

Costs of providing a service to you such as dealing with claims, colleague wages and office space.

-

Tax

For every £100 of premium, you pay an extra £9.50 which goes to the Chancellor of the Exchequer. This is called Insurance Premium Tax.

-

Profit

Profits are what is left over after costs and tax. These are reinvested back into Co-op Insurance to develop and improve our services for you.

Home Insurance
where does my money go?

Have you ever wondered why you pay a different amount for your home insurance every year?

We get asked that a lot so we thought we should show how it works.

Sometimes unexpected things happen with your home that could cost a lot of money to fix.

In return for the money you pay us we’ll help to put things right if things do go wrong.

Fortunately, we know that most of our customers won’t have an incident, however when things do go wrong it will often cost more to fix them than the money you’ve paid us.

But because everyone has put money into the pot, we can help the people who need it. And you can have peace of mind knowing that we will be there for you, too.

Home Insurance
where does my money go?

Have you ever wondered why you pay a different amount for your home insurance every year?

We get asked that a lot so we thought we should show how it works.

Sometimes unexpected things happen with your home that could cost a lot of money to fix.

In return for the money you pay us we’ll help to put things right if things do go wrong.

Fortunately, we know that most of our customers won’t have an incident, however when things do go wrong it will often cost more to fix them than the money you’ve paid us.

But because everyone has put money into the pot, we can help the people who need it. And you can have peace of mind knowing that we will be there for you, too.

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Home Insurance
where does my money go?

Have you ever wondered why you pay a different amount for your home insurance every year?

We get asked that a lot so we thought we should show how it works.

Sometimes unexpected things happen with your home that could cost a lot of money to fix.

In return for the money you pay us we’ll help to put things right if things do go wrong.

Fortunately, we know that most of our customers won’t have an incident, however when things do go wrong it will often cost more to fix them than the money you’ve paid us.

But because everyone has put money into the pot, we can help the people who need it. And you can have peace of mind knowing that we will be there for you, too.

house house

Where your money goes

Buildings Insurance

Cost breakdown

The graph below shows the amount of money put into each area of the business.

For example, if the price you pay is £300, £26 of this would go towards tax, which works out at 9% of your overall price.

You can see that most of what you pay goes towards the cost of claims. You can use the buttons here to see where else your money goes. You can buy two different kinds of home insurance from us. Buildings insurance is for all permanent parts of your home. Contents insurance is for your belongings in your home. Or you can combine the two into a single policy which will be a bit cheaper

Claims

This is how much it costs to help put things right when something goes wrong.

Costs

Costs of providing a service to you such as dealing with claims, colleague wages and office space.

Tax

For every £100 of premium, you pay an extra £9.50 which goes to the Chancellor of the Exchequer. This is called Insurance Premium Tax.

Profit

Profits are what is left over after costs and tax. These are reinvested back into Co-op Insurance to develop and improve our services for you.

contents insurance

Here’s where your money goes

Buildings insurance claims make up around 63% of the price of a policy.

The cost of claims change according to what is being claimed for. For example, fires don’t happen very often (we only get a call about once every 2 days). But when they do they are very expensive – on average over £11,000.

Below, you can see the average costs and frequency of claims paid out by Co-op Insurance for the common claim reasons.

Accidental damage

On average...

It costs £600 to put right.

Everyone who has this pays £4 into the pot.

So no-one has to pay the full amount.

We help people 37 times every week.

Damage may sometimes be caused by an accident, for example putting your foot through the ceiling of your home.

Burst pipes

On average...

It costs £2,300 to put right.

Everyone pays £35 into the pot.

So no-one has to pay the full amount.

We help people 93 times every week.

Cold weather for example could cause damage to your water pipes leading to an escape of water.

Fire

On average...

It costs £11,200 to put right.

Everyone pays £10 into the pot.

So no-one has to pay the full amount.

We help people 5 times every week.

If your home is damaged as a result of a fire it may need repairing or rebuilding.

Flood

On average...

It costs £18,000 to put right.

Everyone pays £12 into the pot.

So no-one has to pay the full amount.

We help people 4 times every week.

If your home is damaged by a flood it may need drying out and repairing.

Storm

On average...

It costs £800 to put right.

Everyone pays £19 into the pot.

So no-one has to pay the full amount.

We help people 151 times every week.

A storm may cause damage to your home, for example to the roof.

Subsidence

On average...

It costs £4,800 to put right.

Everyone pays £9 into the pot.

So no-one has to pay the full amount.

We help people 11 times every week.

Sometimes homes can be damaged due to movement of the ground.

Theft

On average...

It costs £1,200 to put right.

Everyone pays £4 into the pot.

So no-one has to pay the full amount.

We help people 22 times every week.

If your home is broken into you may need to repair any damage.

Other

On average...

It costs £800 to put right.

Everyone pays £9 into the pot.

So no-one has to pay the full amount.

We help people 66 times every week.

There are other ways in which your home could be damaged, for example vandalism.

Contents Insurance

Cost breakdown

The graph below shows the amount of money put into each area of the business.

For example, if the price you pay is £300, £26 of this would go towards tax, which works out at 9% of your overall price.

You can see that most of what you pay goes towards the cost of claims. You can use the buttons here to see where else your money goes. You can buy two different kinds of home insurance from us. Buildings insurance is for all permanent parts of your home. Contents insurance is for your belongings in your home. Or you can combine the two into a single policy which will be a bit cheaper

Claims

This is how much it costs to help put things right when something goes wrong.

Costs

Costs of providing a service to you such as dealing with claims, colleague wages and office space.

Tax

For every £100 of premium, you pay an extra £9.50 which goes to the Chancellor of the Exchequer. This is called Insurance Premium Tax.

Profit

Profits are what is left over after costs and tax. These are reinvested back into Co-op Insurance to develop and improve our services for you.

contents insurance

Here’s where your money goes

Contents insurance claims make up around 41% of the price of a policy.

The cost of claims change according to what is being claimed for. For example, fires don’t happen very often (we only get a call about once every 2 days). But when they do they are very expensive – on average over £4,000.

Below, you can see the average costs and frequency of claims paid out by Co-op Insurance for the common claim reasons.

Accidental damage

On average...

It costs £400 to put right.

Everyone who has this pays £4 into the pot.

So no-one has to pay the full amount.

We help people 60 times every week.

Damage may sometimes be caused by an accident, for example spilling paint on your carpet.

Burst pipes

On average...

It costs £900 to put right.

Everyone pays £5 into the pot.

So no-one has to pay the full amount.

We help people 33 times every week.

Cold weather for example could cause damage to your water pipes leading to an escape of water which may damage your belongings.

Fire

On average...

It costs £4,400 to put right.

Everyone pays £3 into the pot.

So no-one has to pay the full amount.

We help people 4 times every week.

If your home is damaged as a result of a fire your belongings may need repairing or replacing.

Flood

On average...

It costs £6,800 to put right.

Everyone pays £4 into the pot.

So no-one has to pay the full amount.

We help people 4 times every week.

If your home is damaged by a flood your belongings may need repairing or replacing.

Storm

On average...

It costs £500 to put right.

Everyone pays £1 into the pot.

So no-one has to pay the full amount.

We help people 18 times every week.

Sometimes a storm may cause damage to your belongings that may need repairing or replacing.

Theft

On average...

It costs £2,100 to put right.

Everyone pays £11 into the pot.

So no-one has to pay the full amount.

We help people 35 times every week.

If your home is broken into you may need to replace stolen belongings.

Other

On average...

It costs £400 to put right.

Everyone pays £2 into the pot.

So no-one has to pay the full amount.

We help people 42 times every week.

There are other ways in which your belongings could be damaged, for example vandalism.

Portable items

On average...

It costs £400 to put right.

Everyone who has this pays £16 into the pot.

So no-one has to pay the full amount.

We help people 108 times every week.

Your belongings may not be automatically covered whilst away from your home. For example this is for things such as a mobile phone.

Portable valuables

On average...

It costs £700 to put right.

Everyone who has this pays £15 into the pot.

So no-one has to pay the full amount.

We help people 8 times every week.

Your belongings may not be automatically covered whilst away from your home. For example this is for things such as jewellery.

Cost breakdown

The graph below shows the amount of money put into each area of the business.

For example, if the price you pay is £300, £26 of this would go towards tax, which works out at 9% of your overall price.

You can see that most of what you pay goes towards the cost of claims. You can use the buttons here to see where else your money goes. You can buy two different kinds of home insurance from us. Buildings insurance is for all permanent parts of your home. Contents insurance is for your belongings in your home. Or you can combine the two into a single policy which will be a bit cheaper.

Claims 63%
+
Costs 27%
+
Tax 9%
+
Profit 1%
+
See claims breakdown

Claims

This is how much it costs to help put things right when something goes wrong.

Costs

Costs of providing a service to you such as dealing with claims, colleague wages and office space.

Tax

For every £100 of premium, you pay an extra £9.50 which goes to the Chancellor of the Exchequer. This is called Insurance Premium Tax.

Profit

Profits are what is left over after costs and tax. These are reinvested back into Co-op Insurance to develop and improve our services for you.

contents insurance
slice_1 slice_3 slice_4 slice_5
labelPointers labelPointers labelPointers labelPointers see_claims
Claims
63%
Tax
9%
Costs
27%
Profit
1%

Here’s where your money goes

Buildings insurance claims make up around 63% of the price of a policy.

The cost of claims change according to what is being claimed for. For example, fires don’t happen very often (we only get a call about once every 2 days). But when they do they are very expensive – on average over £11,000.

Below, you can see the average costs and frequency of claims paid out by Co-op Insurance for the common claim reasons.

Buildings insurance breakdown

Accidental damage

On average...

It costs £600 to put right.

Everyone who has this pays £4 into the pot.

So no-one has to pay the full amount.

We help people 37 times every week.

Damage may sometimes be caused by an accident, for example putting your foot through the ceiling of your home.

Theft

On average...

It costs £1,200 to put right.

Everyone pays £4 into the pot.

So no-one has to pay the full amount.

We help people 22 times every week.

If your home is broken into you may need to repair any damage.

Subsidence

On average...

It costs £4,800 to put right.

Everyone pays £9 into the pot.

So no-one has to pay the full amount.

We help people 11 times every week.

Sometimes homes can be damaged due to movement of the ground.

Storm

On average...

It costs £800 to put right.

Everyone pays £19 into the pot.

So no-one has to pay the full amount.

We help people 151 times every week.

A storm may cause damage to your home, for example to the roof.

Other

On average...

It costs £800 to put right.

Everyone pays £9 into the pot.

So no-one has to pay the full amount.

We help people 66 times every week.

There are other ways in which your home could be damaged, for example vandalism.

Flood

On average...

It costs £18,000 to put right.

Everyone pays £12 into the pot.

So no-one has to pay the full amount.

We help people 4 times every week.

If your home is damaged by a flood it may need drying out and repairing.

Fire

On average...

It costs £11,200 to put right.

Everyone pays £10 into the pot.

So no-one has to pay the full amount.

We help people 5 times every week.

If your home is damaged as a result of a fire it may need repairing or rebuilding.

Burst pipes

On average...

It costs £2,300 to put right.

Everyone pays £35 into the pot.

So no-one has to pay the full amount

We help people 93 times every week.

Cold weather for example could cause damage to your water pipes leading to an escape of water.

Accidental damage

On average...

It costs £600 to put right.

Everyone who has this pays £4 into the pot.

So no-one has to pay the full amount.

We help people 37 times every week.

Damage may sometimes be caused by an accident, for example putting your foot through the ceiling of your home.

Burst pipes

On average...

It costs £2,300 to put right.

Everyone pays £35 into the pot.

So no-one has to pay the full amount.

We help people 93 times every week.

Cold weather for example could cause damage to your water pipes leading to an escape of water.

Fire

On average...

It costs £11,200 to put right.

Everyone pays £10 into the pot.

So no-one has to pay the full amount.

We help people 5 times every week.

If your home is damaged as a result of a fire it may need repairing or rebuilding.

Flood

On average...

It costs £18,000 to put right.

Everyone pays £12 into the pot.

So no-one has to pay the full amoun.t

We help people 4 times every week.

If your home is damaged by a flood it may need drying out and repairing.

Storm

On average...

It costs £800 to put right.

Everyone pays £19 into the pot.

So no-one has to pay the full amount.

We help people 151 times every week.

A storm may cause damage to your home, for example to the roof.

Subsidence

On average...

It costs £4,800 to put right

Everyone pays £9 into the pot

So no-one has to pay the full amount

We help people 11 times every week

Sometimes homes can be damaged due to movement of the ground.

Theft

On average...

It costs £1,200 to put right.

Everyone pays £4 into the pot.

So no-one has to pay the full amount.

We help people 22 times every week.

If your home is broken into you may need to repair any damage.

Other

On average...

It costs £800 to put right.

Everyone pays £9 into the pot.

So no-one has to pay the full amount.

We help people 66 times every week.

There are other ways in which your home could be damaged, for example vandalism.

Cost per policy (£)

No. of people helped every week

Average claim (£)

Cost breakdown

The graph below shows the amount of money put into each area of the business.

For example, if the price you pay is £300, £26 of this would go towards tax, which works out at 9% of your overall price.

You can see that most of what you pay goes towards the cost of claims. You can use the buttons here to see where else your money goes. You can buy two different kinds of home insurance from us. Buildings insurance is for all permanent parts of your home. Contents insurance is for your belongings in your home. Or you can combine the two into a single policy which will be a bit cheaper.

Claims 41%
+
Costs 49%
+
Tax 9%
+
Profit 1%
+
See claims breakdown

Claims

This is how much it costs to help put things right when something goes wrong

Costs

Costs of providing a service to you such as dealing with claims, colleague wages and office space.

Tax

For every £100 of premium, you pay an extra £9.50 which goes to the Chancellor of the Exchequer. This is called Insurance Premium Tax.

Profit

Profits are what is left over after costs and tax. These are reinvested back into Co-op Insurance to develop and improve our services for you.

contents insurance
slice_two_1 slice_two_3 slice_two_4 slice_two_5
labelPointers labelPointers labelPointers labelPointers see_claims
Claims
41%
Tax
9%
Costs
49%
Profit
1%

Here’s where your money goes

Contents insurance claims make up about 41% of the price of a policy.

The cost of claims change according to what is being claimed for. For example, fires don’t happen very often (we only get a call about once every 2 days). But when they do they are very expensive – on average over £4,000.

Below, you can see the average costs and frequency of claims paid out by Co-op Insurance for the common claim reasons.

Contents insurance breakdown

Other

On average...

It costs £400 to put right.

Everyone pays £2 into the pot.

So no-one has to pay the full amount.

We help people 42 times every week.

There are other ways in which your belongings could be damaged, for example vandalism.

Flood

On average...

It costs £6,800 to put right.

Everyone pays £4 into the pot.

So no-one has to pay the full amount.

We help people 4 times every week.

If your home is damaged by a flood your belongings may need repairing or replacing.

Fire

On average...

It costs £4,400 to put right.

Everyone pays £3 into the pot.

So no-one has to pay the full amount.

We help people 4 times every week.

If your home is damaged as a result of a fire your belongings may need repairing or replacing.

Burst pipes

On average...

It costs £900 to put right.

Everyone pays £5 into the pot.

So no-one has to pay the full amount.

We help people 33 times every week.

Cold weather for example could cause damage to your water pipes leading to an escape of water which may damage your belongings.

Accidental damage

On average...

It costs £400 to put right.

Everyone who has this pays £4 into the pot.

So no-one has to pay the full amount.

We help people 60 times every week.

Damage may sometimes be caused by an accident, for example spilling paint on your carpet.

Portable items

On average...

It costs £400 to put right.

Everyone who has this pays £16 into the pot.

So no-one has to pay the full amount.

We help people 108 times every week.

Your belongings may not be automatically covered whilst away from your home. For example this is for things such as a mobile phone.

Theft

On average...

It costs £2100 to put right.

Everyone pays £11 into the pot.

So no-one has to pay the full amount.

We help people 35 times every week.

If your home is broken into you may need to replace stolen belongings.

Storm

On average...

It costs £500 to put right.

Everyone pays £1 into the pot.

So no-one has to pay the full amount.

We help people 18 times every week.

Sometimes a storm may cause damage to your belongings that may need repairing or replacing.

Portable valuables

On average...

It costs £700 to put right.

Everyone who has this pays £15 into the pot.

So no-one has to pay the full amount.

We help people 8 times every week.

Your belongings may not be automatically covered whilst away from your home. For example this is for things such as jewellery.

Accidental damage

On average...

It costs £400 to put right.

Everyone who has this pays £4 into the pot.

So no-one has to pay the full amount.

We help people 60 times every week.

Damage may sometimes be caused by an accident, for example spilling paint on your carpet.

Burst pipes

On average...

It costs £900 to put right.

Everyone pays £5 into the pot.

So no-one has to pay the full amount.

We help people 33 times every week.

Cold weather for example could cause damage to your water pipes leading to an escape of water which may damage your belongings.

Fire

On average...

It costs £4,400 to put right.

Everyone pays £3 into the pot.

So no-one has to pay the full amount.

We help people 4 times every week.

If your home is damaged as a result of a fire your belongings may need repairing or replacing.

Flood

On average...

It costs £6,800 to put right.

Everyone pays £4 into the pot.

So no-one has to pay the full amount.

We help people 4 times every week.

If your home is damaged by a flood your belongings may need repairing or replacing.

Storm

On average...

It costs £500 to put right.

Everyone pays £1 into the pot.

So no-one has to pay the full amount.

We help people 18 times every week.

Sometimes a storm may cause damage to your belongings that may need repairing or replacing.

Theft

On average...

It costs £2,100 to put right.

Everyone pays £11 into the pot.

So no-one has to pay the full amount.

We help people 35 times every week.

If your home is broken into you may need to replace stolen belongings.

Other

On average...

It costs £400 to put right.

Everyone pays £2 into the pot.

So no-one has to pay the full amount.

We help people 42 times every week.

There are other ways in which your belongings could be damaged, for example vandalism.

Portable items

On average...

It costs £400 to put right.

Everyone who has this pays £16 into the pot.

So no-one has to pay the full amount.

We help people 108 times every week.

Your belongings may not be automatically covered whilst away from your home. For example this is for things such as a mobile phone.

Portable valuables

On average...

It costs £700 to put right.

Everyone who has this pays £15 into the pot.

So no-one has to pay the full amount.

We help people 8 times every week.

Your belongings may not be automatically covered whilst away from your home. For example this is for things such as jewellery.

No. of people helped every week

Average claim (£)

Cost per policy (£)

Price changes explained

One of the most common questions we get asked is “why do I have to pay more than last year?” There are several reasons why the price may change.

11.4% is the average increase per policy

Inflation 3.2%
+
You are more experienced -0.5%
+
Claims -2.8%
+
Changes -0.3%
+
Tax 3.3%
+
Removal of introductory discounts 4.5%
+
Prediction of future claims 0.3%
+
Future improvements 3.7%
+

Inflation

Putting things right costs money and sadly these costs tend to go up every year. These include building materials and labour (Generally the price change is between 1% and 5%)

You are more experienced

We find that the more experienced customers are, the less likely they are to have incidents around the home. We will take this into account in your price. (Generally the price change is between -1% and 1%)

Claims

Where No Claim Discount is a feature of your policy, if you haven’t made a claim in the last year, we will give you a discount at renewal, until you reach the maximum amount. However, if you have needed to claim, your discount will reduce, unless you have bought No Claim Discount protection.
 (Generally the price change is between -14% and 9%)

Changes

You may have reviewed what you are covered for in the last year, and made some changes, such as adding or removing Accidental damage cover. Your price this year will be based on the new details and may be higher or lower as a result. (Generally the price change is between -24% and 17%)

Tax

For every £100 premium on policies which start before November 2015 you pay an extra £6, which goes to the Chancellor of the Exchequer. For policies which start from November 2015 you pay £9.50. This is called Insurance Premium Tax.

Removal of introductory discounts

We offer introductory discounts to attract new customers. These offers are removed, not all in one go, but over a number of years, as we think this is the right thing to do. (Generally the price change is between 0% and 10%)

Prediction of future claims

We are always trying to improve our understanding of what may happen in the future. This means our prices will change over time as we learn more. Your price could increase or decrease due to this. (Generally the price change is between -17% and 16%)

Future improvements

Extra increases are required so we can make a profit. This is put back into our business to develop and improve the service we offer to you. (Generally the price change is between 0% and 12%)

left you pay less
you pay more left
Inflation
You are more experienced
Claims
Changes
Tax
Removal of introductory discounts
Prediction of future claims
Future improvements
6%
5%
4%
3%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%
-6%

What is this information based on?

Stephen from our pricing team and Dave from our data management team have looked into how to explain our prices to you.

To break down the typical premium we would offer today, they used our financial records that show where our money was spent over the second six months of 2015 for our home insurance products.

The types of claims our customers make vary by season and by year according to the weather and environment. To give you a fair view of how the claims are broken down, they have created an average out of all the claims from the start of 2007 until the end of June 2015.

To show how our prices change from year to year, they have used all the prices that were offered to our customers in January of 2016 and compared them to the prices that those customers paid in January 2015.

As you may expect, our features are subject to limitations and/or exclusions, so please speak to our call centre or view our policy documents online for further details.
Applicants for insurance are subject to normal underwriting criteria.