Home insurance premiums are continuing to rise, with combined buildings and contents quotes increasing by 1.8% in the fourth quarter of 2017. The AA British Insurance Premium Index report analyses Shoparound quotes, and trends over the last 12 months have shown an overall average increase of 5.7%.
It’s not all bad news. Home contents insurance is actually slightly down, with the cost of a quote reducing by 1.1% in the last quarter. However this is still up on prices in 2016. Home buildings and combined quotes have risen, and the additional average cost to an insured works out at just under £3.
One of the reasons for prices increasing is the rise in Insurance Premium Tax to 12% in June 2017, up from 10%. This has steadily increased over the last few years, from a standard rate of 6% in 2011. Inflation has also been cited as contributing to the rise.
How can you ensure you get the best insurance premium?
Even with prices increasing, there are still savings to be made on your insurance. As with all insurance quotes, there are things you can do to try and reduce the costs and get the right price for your personal situation. It is important to remember that the cheapest insurance is not always the best one for you. Checking the terms and conditions and exclusions will help you to understand if everything you need is covered.
Shop around at each renewal. New customers often get offered better discounts and deals than existing customers. So, to get a better price it is usually worth spending some time getting new quotes at each renewal period.
Correctly calculate the value of your belongings and your property’s rebuild cost. It is thought that one in five of homeowners undervalue their contents. Many also undervalue the cost to rebuild their property. While this means that in the event of a claim you will likely only receive a fraction of the pay out, the additional premium that offers complete cover would be small.
Manage your insured items. Many people never check or update the level of cover they have. This means that named items don’t get changed and you could be insuring things you don’t even own anymore. It could also mean that new purchases are not insured. You should keep an itinerary of your belongings with values. At each renewal, check your cover and ensure new big ticket items are included in your insurance cover, and removed if you sell or no longer own.
Work in partnership with a broker. Getting new quotes can be time consuming and working out contents and rebuild costs can be complex. It is no wonder that many people just stick with the same insurance year on year. Working with a broker, who can get to know you and understand your requirements can help you get the right premium, and often save money on your insurance.
The specialist team at AllMedPro helps many busy medical and dental professionals find the best home insurance for them. If you need a little help, contact us.
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