HSBC freezes home insurance premiums for five years

HSBC is giving its new and existing mortgage customers the chance to fix their home insurance premiums for five years, in the wake of rising insurance costs following the recent flooding across England.

New-to-bank mortgage customers and existing mortgage customers who do not already have home insurance with HSBC will benefit from a freeze on premiums for five years if they take out a combined building and contents policy before 30 September, 2007. They’ll also receive £50 cashback once the policy has commenced.

Dennis Smith, Head of Insurance Propositions at HSBC, said: “The vast majority of home owners favour the stability of a fixed-rate mortgage, and we believe that consumers would appreciate the stability of home and buildings premiums that are frozen for five years as well. This will be particularly appealing to first-home buyers looking to fix their costs as much as possible, and mortgage customers who are concerned about the rising cost of insurance, especially following the recent floods.”

HSBC’s five-year fixed home insurance:

is available to HSBC’s new and existing mortgage customers taking a new home insurance policy;

applies to combined buildings and contents policies with or without accidental damage cover, with a premium of £94.50 or more; and

will pay cashback of £50 once the policy commences.