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How loyalty to your home insurer can cost you

People are more demanding than in days gone by and they expect the highest levels of customer at the cheapest possible price, moving from company to company until they find the best deal.

The same applies to insurance companies and as consumers we have become more savvy when it comes to studying the different policies to find the one which one suits us the best in terms of cost and benefits. Nowadays it simply doesn’t make sense to maintain loyalty to a certain provider, all the evidence would suggest that in many cases you can save a significant amount of money by saying thanks but no thanks to your insurance provider at renewal time.


It is a common misconception that you are under obligation to accept home insurance from your mortgage provider. This is certainly not the case and in fact insurance from your mortgage provider will tend to be more expensive and rarely the best option for a homeowner. Your mortgage and home insurance are two completely separate packages and should be treated as such.

Experts in the industry suggest that we waste in the region of £100m every year by accepting automatic renewals for home insurance. Many of us are simply too busy to shop around, meaning that insurance companies make a profit out of our lack of time. However, by just taking a few moments to do an online home insurance comparison you can save a significant amount of money. Research has suggested that many people believe it is not worth spending the time to do this as they won’t get it any cheaper. This is rarely true.

Read the small print

Before you sign up it is best to check what is on offer. Cheapest is not always best as different companies offer different benefits , read the small print to find out what potential exemptions or conditions there are. Comprehensive policies cover a range of issues including pipe damage, boiler breakdown, personal liability and subsidence with many insurers, and it can save a lot of money in the long run should the worst happen.

Cover as much as you can

The lowest amount you can normally insure with regard to contents is usually around £35,000. This is only an estimate based on averages and does not necessarily reflect your own individual needs. Spend a bit of time to calculate an accurate sum which would truly recompense you in the advent of a fire or theft. Individual high value items such as pieces of jewellery need to be listed separately so that the insurer is aware of them and can allocate a value to them.

Customer service and benefits are improving all the time. The home insurance market is extremely competitive with many companies vying for your business. Policies are becoming extremely competitive as a result and it is an ideal market for the discerning customer looking for a great deal.


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