The cost of living has increased dramatically in recent years, and many household are struggling to pay their bills. Rising food prices, energy bills and petrol prices are putting household budgets under strain. One area it’s possible to make good savings is on the cost of home insurance. It’s never advisable to go without insurance for your home, and if you paid for it with a mortgage the lenders will insist that the building is insured. Shopping around for the best home insurance deals can save you up to thirty percent off your current premium.
Home insurance comparison sites have grown in popularity in recent years, and they are a great way to scan the market and compare hundreds of policies. There is some concern in the insurance industry that many people aren’t buying the cover they need if they shop online, and there are pitfalls to avoid. Some people are tempted to experiment with different responses to questions to see how this affects premiums, and this can lead to buying the wrong type of cover.
The following golden rules of home insurance comparison will guide you to get the best policy.
1) Use more than one comparison service
The largest comparison sites compare over fifty policies to search for the best premium for you, but none of them covers the whole market. Use at least two services to ensure you cover a broad range of insurance companies and deals available. Some home insurance providers refuse to take part in comparison sites, and it’s worth approaching these for a quote to see what they can offer. Direct Line and Aviva offer generous discounts for new customers, but you won’t find their products on comparison sites.
2) Don’t just look at the price
Buying insurance is about finding value, not just looking for the cheapest product available. If you buy an inferior product with basic levels of cover, you may regret it when you need to make a claim. Don’t be put off by brand names you don’t recognize, as these are often backed by big companies like AXA and Allianz. The company underwriting a policy should be made clear in the policy information. Cover for things like photographic equipment, bicycles and items of jewellery varies between policy, so check to make sure any quote offers the levels you need.
3) Check the excess levels
A policy excess is the amount you have to contribute to a claim, and it can vary between one hundred and five hundred pounds. Policies with higher excess levels are generally cheaper, but consider if you would be able to pay the excess before buying a policy with a higher limit. Excess levels for some types of claim, such as flooding, are often higher than the standard policy excess. Check the details of a policy very carefully, and make sure you understand how much you would have to contribute to different types of claim.
4) Check you can meet policy conditions and requirements
The insurance industry used to have a bad name for hiding unfair policy conditions in small print, but regulation now means everything has to be made very clear to the customer. It’s still important to read your policy documents and make sure you understand exactly what the conditions mean. For example, most home insurance policies state minimum security requirements and specify the type of doors and security devices your home should have fitted. If you make a claim and are in breach of terms and conditions, the insurance company are within their rights to refuse payment.
5) Choose the cheapest payment option
The price quoted on a home insurance comparison site is usually the annual premium, and this can increase if you choose the convenience of monthly instalments. Some companies offer interest free instalments, but others charge fees and interest on top of the premium quoted. One of the best options is to pay the full annual premium on a credit card and spread the cost at your own convenience. Some insurance providers also charge administration fees for taking out a policy, and these additional costs can add up. Make sure you looking at the total cost of a policy when comparing home insurance policies.
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