We’ve previously talked about how often new customers get better deals than loyal ones when it comes to insurance. But are you one of the 13 million households that is potentially paying too much for your home insurance?
A study by Citizens Advice found that many customers do not shop around when their policy expires, and simply accept their renewal quote. They found that this was particularly true for over 65s, where 40% had their home insurance policy for more than five years.
This is a potential additional cost of £110 to them. From their findings, it is estimated that one third of homeowners are paying up to 70% more than they should be for a policy.
A hike in the premium stated in the renewal quote compared to a new customer quote is evident across many insurance markets. Often vulnerable people are hardest hit and find it easier to accept their renewal than research other providers. However, many people also simply don’t feel they have the time to do the research.
Try some of these handy tips when selecting your home insurance.
Make time to check your policy. Does it still cover what you need? With many people under and over insured on policies, checking the detail is important.
Contact your current provider to see if they have a better deal available. If your policy stays the same, just making a call to ask for a cheaper quote might be enough to reduce your policy cost.
Calculate your home contents accurately. Keep an itinerary of valuables. Has this list changed since your last renewal? Remember to remove and add relevant valuable items to your policy.
Compare different policy providers for payout limits and exclusions. Different providers offer slightly different policies depending on their focus or expertise. Sometimes a specialist provider might be needed. Take a look at the policy outlines and work out which one work for you. Pick the right one and not just the cheapest which could mean you are underinsured.
Balance a reasonable excess with policy premium. One way to save money on your policy is to increase your excess. However, you should set it at an amount that you consider reasonable and affordable in the event of a claim.
Check the additional benefits. Look at your added extras, such as mobile phone cover, and make sure you aren’t already insured for this elsewhere, such as through your bank account or another policy. You can only claim once in the event of an incident so don’t pay twice.
Work with a reputable broker. We can help you with many of the above to save you time and help you pick the right policy for you. We have a duty to make sure you are comfortable with your policy and that it is right for you.
We appreciate that healthcare professionals have busy schedules, so at your next home renewal, give us a call to see if we can save you some money and time on your home insurance policy.