“Home insurance is a seriously worthwhile investment if you haven’t got the cash to replace everything you own”, says Hannah Maundrell, Editor in Chief, money.co.uk “It doesn’t have to be expensive and you certainly don’t have to spend days trawling through small print! Home insurance comparison sites can make it easy to find the best policy for the cheapest price – just remember to check you’re getting the protection you need rather than focusing solely on cost. Shopping around for home insurance will take you an hour or so once a year and could save you £100s so it’s well worth it!”
Here are Hannah’s top tips for finding your perfect policy, fast:
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1) Only pay for insurance you actually need
If you’re a homeowner you’ll need building and contents insurance, but tenants only need contents insurance – your landlord should sort the rest. Add-ons are only worth the extra if you’ll remember to use them.
2) Make your excess affordable
You can save money by increasing your voluntary excess but make sure you can afford to pay it if you need to claim.
3) Protect your valuables properly
Check that the ‘single item limit’ on your insurance is enough to replace each of your valuables. If you own anything that’s worth more, list these separately so you can claim for the full amount if you need to. Make sure jewellery, expensive handbags & bikes are covered away from home too.
4) Think twice about insuring mobiles
You can include mobiles under contents cover but if you need to claim you’ll not only have to pay a hefty excess that could be nearly as much as your phone, but will also make your premiums more expensive next year. Separate mobile phone insurance is often a safer bet.
5) Double check everything
Go through the ts and cs with a toothcomb and make sure you’re covered for everything you need to be. Check how you’re protected against flooding, subsidence, garden damage, burst pipes and freezer contents as well as the basics.
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Remember:
1) Don’t renew automatically
A big no-no; stick with the same insurer and you’ll pay more for a policy that might not be right for you. Always shop around because you’ll make massive savings and get better cover in the process. If you like your insurer then you can always apply as a new customer to see if you’ll save.
2) Don’t go on price alone
Go for the cheapest policy without checking the details and you could find yourself unable to claim. The secret is to go with the insurer that quotes the best price for the cover you actually need. This way you’ll be fully protected but won’t pay extra.
3) Don’t over insure your home
Use rebuild value and not market value when you get a buildings insurance quote. This is the amount it would cost to rebuild your home from scratch, not what it would currently sell for so it’s likely to be less. The ABI rebuild calculator can help you work this out: abi.bcis.co.uk
4) Don’t under insure either
Imagine how much it would cost to replace everything you own (car aside!); this is what you’ll need to insure your home for. Go through each room in your house and work out what it would cost to replace everything in it as new, and remember to include your garden and garage too.
5) Don’t pay extra to pay monthly
Most insurers will charge you upwards of 20% extra to pay monthly – don’t! You can spread the cost yourself using a credit card that gives you 0% or low rate purchases and pay it off in instalments. If you have the cash, pay using a reward or cashback credit card then clear the balance ASAP so you get a bonus.
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“When your renewal letter comes through, your first thought should be to get online and make sure what you’re being offered is the best deal possible”, says Ben Wilson, insurance expert at Gocompare.com. “When it comes to insurance, loyalty doesn’t pay, and new customers will usually get the best deals. It’s not just the price of your insurance that’s important. Be sure to look at the features that policies offer and make sure you’re getting the right level of cover for your needs.”
Look at your excess
When comparing insurance prices, it’s easy to focus on the price. However, it’s often worth looking at what the excess for each policy is, especially if there are several policies that offer similar cover at a comparable price. Your excess is the amount that you have to contribute towards the cost of a claim. So, if you have policies that only differ by a couple of pence or pounds, it might be worth looking at the excess each policy charges as paying an extra few pounds on the annual cost of your insurance could give you a lower excess, which could be better for you should you need to make a claim.
Watch out for doubling up
Contents insurance will often give you the option to add cover for items like gadgets or bikes when they are away from the home. While this can be a good way of protecting your valuables while you’re out and about, it’s a good idea to check that you’re not already covered for some of this before you spend extra insuring it with your contents policy. Equally, before considering taking out a standalone insurance policy for an individual item, it’s worth finding out whether you are already covered for it on your home insurance as doubling up on cover won’t offer you any extra protection for your valuables and is a good way of spending money needlessly.
Consider looking at your home security, but DON’T do it solely for a cheaper premium
Home security can be a grey area when it comes to your home insurance. For example, if you don’t currently have a burglar alarm, then adding a £500 security system is highly unlikely to reduce the cost of your insurance in a way that will justify the cost of buying and fitting it. However, it’s worth noting that good home security can reduce the chance that you will have to make a claim in the first place, saving you money and hassle in the long run.
For more information got to www.gompare.com
