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In response to feedback from our customers, we've taken the decision to enhance our Escalator Clause, provided for free on most of our policies for existing residential and commercial properties.

The policy limit now increases by a compounded rate of 10% per annum on each anniversary of the commencement date, subject to a maximum of 200% of the original limit. Previously, the policy limit typically increased annually by a fixed 5% of its original amount and only for a period of 10 years.

The new clause offers a real advantage to the insured, as it is linked to the policy limit and not the value of the property. Therefore, regardless of what happens in the property market, the limit is guaranteed to increase year on year until the maximum is reached.

Using a £200,000 policy limit as an example, the table below highlights just how much better our new Escalator Clause is compared to the previous one.