OK, so it’s been a year since you last thought about your home insurance and you’ve received your renewal notice. What now?
Firstly, don’t make the mistake of sticking with the same provider simply because it’s easier. Spare a few minutes to compare home insurance quotes with our easy-to-use comparison tool – you could make significant savings.
Have you made a claim?
If you’ve claimed in the last 12 months you might find that the cost to insure your home has increased, even if you have protected no claims bonus. Many providers don’t offer incentives and discounts to existing customers, so it's often wise to shop around for a more competitive quote. Loyalty doesn’t always pay, especially if you’ve noticed a significant hike in your premium.
Recalculate your rebuild costs
The cost to rebuild your home for buildings insurance purposes must be accurate to ensure that you don’t end up over or under-insured. Many homeowners refer to their original mortgage offer, or deeds for the reinstatement/rebuild value, which may be years out of date. When it’s time to renew your home insurance, consider whether any improvements or extensions to your property, such as a conservatory, loft conversion or high-end fitted kitchen will impact your current rebuild value. Many insurers automatically adjust the amount you’re insured (index-linking) to take into account fluctuations in rebuilding costs but do check this before you sign-up.
Check the amount of contents cover
Over the last year you may have made some significant purchases – a new widescreen television or bikes for the kids – meaning the value of your possessions could have increased. It’s always worth taking a moment to add up the costs for replacing your items should the worst happen; don’t spend more than you have to by over-insuring. And, always remember to keep receipts for any new purchases as you’ll need them should you have to make a claim.
Optional Extras
Some insurers include extra features, such as home emergency cover or cover for items away from the home. Think about whether you really need this level of protection and if you don’t, look for a basic policy that excludes this extra cover – you might find the premium is significantly lower. That said, some policies include them at no extra cost so keep an eye on what’s included and what’s not, and don’t pay for cover you don’t need.
Tips to reduce your renewal quote
Remember: the fewer the claims, the lower your home insurance premium will be. Think about the amount of excess you’re willing to pay on any claim – this could reduce your premiums. Be vigilant and consider installing burglar alarms, smoke alarms, security lighting and maybe even a safe. Look for cash-back incentives and most importantly, shop around for the best price.
Read our home insurance articles and guides for more great topics or get a home insurance quote.