Don’t Pay for Home Insurance Apathy

As Britain stands on the brink of a recession consumers are feeling the pinch with everything from their mortgage repayments to their fuel bills. However, there is one payment that millions of Brits could drive down with a little more attention - their home insurance premiums. According to research from a comparison website, around 56 per cent of cash-strapped Brits are collectively losing around £1.4 billion a year because they have not reviewed their home insurance policy for more than three years. This apathy is leading homeowners to accept the costs of expensive renewals rather than shopping around for more competitive deals.

It’s a common mistake to trust that the renewal rate which an existing insurer is quoting is the best deal available. Many homeowners with a home insurance quote may have shopped around years ago and assume that if their insurer was the most competitive then, it will still be the most competitive now. However, that is rarely the case and perhaps more worryingly many homeowners are even opting for their bank’s own insurance product believing it will better their chances of being approved for a mortgage - although this is certainly not the case.

Why you should shop around for home insurance

The home insurance market has become increasingly competitive in recent years thanks to the explosion of comparison websites. These websites allow consumers to compare policies from different home insurance companies like-for-like based on their individual circumstances with the cheapest policy listed first. Although home insurance premiums have increased on average according to the AA British Insurance Premium Index, providers offer increasingly competitive deals to new customers in an attempt to attract new business.

In particular the best deals can be found online - not just through comparison websites but through the providers’ own websites. This is because arranging policies online reduces the company’s overheads and these savings can be passed on to the consumer. For example, customers of AA home insurance could earn a discount of up to 30 per cent for shopping online; Barclays home insurance customers earn a 10 per cent discount online and become eligible for a £55 cashback deal; and Churchill home insurance also offers a 15 per cent online discount. These competitive deals are not available to those who are simply renewing a policy - they are available to new customers only. Many homeowners fear shopping around for home insurance if they have built up a no-claims discount with an insurer. However, many insurers will honor a no-claims discount built up elsewhere and offer savings accordingly.

How to find cheap home insurance

Comparison websites are the quickest and easiest way to find low cost home insurance because they effectively act as a one-stop shop for home insurance. According to one comparison website’s research the average homeowner could save £186 a year by shopping around this way. However, that’s not the only way to save. In addition, homeowners should think about enhancing the security of their homes as many providers will offer discounts based on the measures you take. Fitting a house alarm could earn a premium in the region of 10 per cent, particularly if the alarm is from an insurer-approved brand. Other security measures that could lead to savings include security lights, time-switch lights, joining a Neighbourhood Watch scheme and fitting a high fence or wall around your garden.

Ensure you fit suitable locks to your doors too - five-lever mortise deadlocks (British Standard BS3621) should be fitted to all external doors and it’s worth using laminated glass on windows as this is generally more secure. It’s important to prepare your home for bad weather too. It is necessary to secure any loose roof tiles and clear drains regularly as if your home is deemed to be in a state of disrepair you could invalidate a claim. If you live in a flood-risk area buy sandbags and other flood protection devices - make sure your insurer is informed of any measures you take to offer additional protection.

Look at the policy itself and pay close attention to what you do and don’t need. For example, do you need accidental damage cover if you live alone and are therefore unlikely to suffer from children or pets knocking items over? Are you paying to protect business equipment such as PCs, laptops and fax machines that you don’t actually own? You may be able to reduce the level of cover and save. Also consider the voluntary excess you are willing to pay. This should only be set at a level you can comfortably afford, but raising the excess level should help you enjoy cheap home insurance.

cheap home insurance
cheap home insurance