The purchase of any kind of insurance has been made considerably easier these days by the plethora of online providers offering more or less the cover you are looking for.
In your search for home insurance, for instance, you might be tempted to search out the cheapest deal on offer.
But if that results in cover which fails to provide the protection you need for something as important as your family’s home, the purchase is likely to have proved a false economy – especially when you come to make a claim and only then discover the inadequacy of the cover you bought.
So, here are some tips and suggestions for securing the cover you need, but cover which also may allow you to save money on your home insurance:
Choose a specialist provider
- some home insurance providers go out of their way to match your particular, individual needs and circumstances to the products available;
- with their experience and expertise, such brokers can do the legwork for you to ensure that you obtain suitable cover at a competitive price, meaning you don’t have to shop around for cover yourself – potentially saving you time and money;
Avoid overinsurance …
- the Association of British Insurers (ABI) warns against the temptation to overinsure – by adding optional extras which you may hardly if ever need on to your basic home insurance policy;
- one area where this may be especially prevalent is in estimating the total building sum insured – the estimated reconstruction costs in the event of a total loss (as well as clearing the site if the property has been completely razed to the ground);
- if you over-estimate that cost and arrange too high a total building sum insured, you are effectively paying for cover which you do not need and may never be able to claim;
… but also avoid underinsurance
- whilst avoiding any temptation to overinsure, make equally insure that you do not underinsure;
- underinsurance most commonly occurs when establishing the value of the contents of your home – if you underestimate that value, your contents insurance may not provide sufficient cover for the repair or replacement of stolen, lost or damaged items;
Combine your building and contents insurance
- although you may buy your building insurance and contents insurance separately, there are invariably discounts to be earned by combining both elements of your home insurance into a single policy with the same insurer;
- a combined policy may avoid disputes between insurers if you are claiming for loss or damage which affects both the building and its contents (as the result of flooding, for example);
Accept a higher excess
- different parts of your home insurance typically attract different levels of excess – a claim for damaged contents, for example, might attract an excess of £100, whilst for a subsidence claim it might be £1,000;
- by agreeing to increased excesses across the various headings of your home insurance, you are likely to enjoy a reduction in the cost of the premiums you pay – but remember that your contribution to the settlement of any subsequent claim also increases.
Finally, never allow your home insurance to automatically renew without seeing what all your options are. As a recent news article reported, research showed that customers renewing their home insurance with the same insurer after more than a year were likely to pay an average of £75 more than a new customer.
When buying home insurance, the cheapest policy may not always be the most suitable. Instead, the key lies in finding cover that represents good value for money – providing what you need at a competitive price.
Fortunately, it is possible to achieve both these aims and still save money on your home insurance.