Pest Cover - A new incentive for home insurance companies?

Alongside the recession, the insurance sector continues to hit the headlines as more of us start cancelling our policies in order to cut back on monthly spend, and insurance companies compete to entice us back. At the end of 2008 it seemed that many were offering online comparison services, whilst earlier this year a new trend among car insurance companies emerged as many of the biggest names began offering cash back after customers had taken out policies.

Whether this has worked for the companies in question remains to be seen, but the offers were certainly subject to some criticism from newspapers and commentators who claimed they might mislead prospective customers. However, as we move into spring new opportunities for insurance companies to set themselves apart from their peers are certainly on the horizon.

According to an article in The Independent (March 29th), reported problems of pest infestations are on the increase in the UK, with rodents proving to be a big issue for homeowners. Rats, mice and even moles are increasing in numbers and are not only an annoyance due to the diseases they carry (such as salmonella via parasites and faeces) but also because of the damage they can and do cause. “Their main destructive power is in their teeth,” The Independent states, “mice and rats must wear down their ever-growing incisors, and this need to gnaw drives them to chew through anything – electrical wires, plastic pipes and more.”

But it is not just furry critters who are causing homeowners and home insurance companies to consider pest control prices. Insects and bugs are also responsible for damage to home interiors. The menacingly named “Carpet Beetle” (which is carried by birds, transported to their nests and commonly gets into homes through our lofts) is not only fond of carpets and rugs, but will devour other furnishings such as curtains and sofas.

Subsequently, this increasing problem is influencing some insurance companies to offer pest control cover as an addition to house cover, and even as a standalone policy in its own right. Therefore, akin to the comparison sites and cash back trends that are still on-going, I wonder if the home insurance sector might see this increase in pest infestations as a method to make their offers more appealing – particularly as private exterminators are popular and, according to The Guardian, often in too great demand.