Find out how to receive lower prices on home insurance quotes from price comparison websites, as well as how to negotiate better terms and save money on both building and contents insurance.
Why should I shop around for my homeowner’s insurance?
Even though your homeowner’s insurance company was the most affordable choice the previous year, there is no guarantee that the renewal quotation will be favourable.
It has become illegal for insurers to charge existing customers who renew their policies more than they would pay for a brand-new policy since January 2022.
However, insurers still have plenty of valid reasons for increasing your premium, even if you haven’t filed a claim throughout the policy period. It’s possible that they view you, your property, and your neighbourhood as riskier than they did before.
It will only take a few minutes of your time to compare several house insurance quotes, which will allow you to determine whether or not the offer you are renewing with is the best one currently available.
We will explain how to get the most out of comparison websites and other ways to save money on home insurance, regardless matter whether you own a house, an apartment, or just a room in someone else’s property.
What is the monthly premium for homeowners insurance?
According to MoneySuperMarket’s price index, the average yearly premium for a combined house insurance policy was £142 as of December 2021. This information is current as of 2021. Buildings-only insurance was priced at £117 per year, while contents insurance was priced at $55.
However, the amount that you will pay is contingent on a wide variety of factors, including the following:
the sort of coverage you are interested in, the type, size, and construction of the property, your location, and the amount of money it would take to replace your items or rebuild your property.
history of damage to the property, such as flooding or subsidence, as well as claims made in the past, how the property is currently being utilised, and any security measures that are currently in place.
Even if you can’t (easily) adjust some of these things, there are some straightforward guidelines you can follow to reduce the total amount you have to pay without lowering the level of protection you receive.
How to shop around for the best deal on home insurance using online comparison sites
You may obtain a huge number of estimates for home insurance in a very short amount of time by using price comparison websites, which are an excellent starting point for your search for affordable insurance.
Compare the Market, Confused.com, GoCompare, and MoneySuperMarket are the primary sites that offer pricing comparisons for various types of insurance.
Because not every provider is featured on every comparison site, it is important to obtain prices from a number of different websites. Because some insurers, such as Direct Line and NFU Mutual, are not included on comparison sites, you will need to contact them individually to obtain a price.
You should also take a look at the providers that are recommended by Which? We evaluate the largest home insurers on the market in terms of the quality of their coverage and the service they provide to customers.
What information do I need to get a quotation for my house insurance?
You will need to gather some information on your property in addition to your personal information, including the following information on your property:
the value of the property that should be used for calculating the premium for buildings insurance
the value of the items, the number of rooms and bathrooms, the age of the house, the type of roof, the distance from trees and water, whether or not there is a burglar alarm, and the types of locks that are used by the people who live there.
Please see the following for further details regarding valuation calculators, which can help you save time and prevent making costly mistakes.
Can I trust comparison site prices?
The information presented on comparison websites is not always accurate, therefore before clicking through to the website of the provider, you should double check that the policy in which you are interested provides all of the coverage that you require.
Make sure that the information that the insurer “assumes” about you, which is essentially information that you haven’t disclosed about yourself via the comparison site, is accurate.
You should also make sure that you are not paying for any add-ons that you do not require; otherwise, you may be essentially overpaying for the coverage that you do want.
Sites that offer cashback
If you click via one of these sites to get house insurance, you are eligible for a cash reward from companies like Quidco and TopCashback.
However, even if cashback is included, they won’t definitely provide you with the greatest deals available, so don’t count on it.
Examine the difference between the price of the policy after cashback and the cost of the cheapest comparable policy that can be found on a comparison website.
How can I lower the amount of my house insurance premium?
Get only the minimum amount of coverage required.
Buildings insurance is only required if you are accountable for the upkeep of the property itself. Contents insurance, on the other hand, is something that everyone should give serious thought to purchasing.
Purchasing combined insurance for your home and its contents is typically more cost-effective than purchasing both policies separately; however, you should verify that your insurance provider does not have separate excesses for your home and its contents.
In the event of a claim that affects both components of your policy, such as a fire or a flood, your excess may be removed twice from your policy total.
Use a valuation calculator
A significant number of policyholders pay more than they need to for their homeowner’s insurance because they wrongly calculate the value of their property and its contents.
You need to give the rebuild value (the cost of rebuilding the property from scratch) when determining the worth of the building itself, and not the market value, which is typically higher (what it would cost to buy the property if it was for sale).
Use the calculator provided by the Association of British Insurers or receive an assessment from a survey that you commissioned to get an idea of how much it would cost to rebuild your building.
In the meanwhile, take care not to underinsure your home’s contents in an effort to reduce the cost of your insurance premiums. Take an inventory of everything you own and calculate how much it would cost to buy new products that are comparable to what you already have.
Find the optimal level of overage.
You may be able to reduce the cost of your homeowner’s insurance by modifying the amount of the deductible that you are responsible for paying in the event of a claim.
If you are willing to pay a bigger excess, then your insurance provider will offer you a lower monthly rate. Having said that, be sure to pick and choose your extras carefully.
If you set the bar too high, especially if it starts coming dangerously near to your claims limit, it may make it either fruitless to make a claim on your insurance or too expensive to do so.
Your homeowner’s insurance premium should be paid annually (if you can afford it)
When you pay your provider on a monthly basis, you are essentially taking out a loan from them, which typically comes with a very high interest rate. The annual percentage rate (APR) can range anywhere from zero to far over forty percent.
Always check the pay-monthly fees and evaluate them in comparison to the annual cover cost. In addition to listing APRs, our ratings of home insurance also highlight companies that provide monthly payments at no additional cost.
You might spread the expense out over time by utilising a credit card that does not charge you any interest on purchases.
bargain for a cheaper insurance policy.
You might use cheaper home insurance plans offered by other companies as leverage in negotiations with your present provider if you are set on maintaining your relationship with them.
By following our tried-and-true bargaining script, which is provided below, you can increase the likelihood that you will be offered a deal on home insurance that is more affordable.
Make your home more secure to get a discount on your homeowner’s insurance.
If your home insurance provider sees you as a low-risk customer, you’ll have a better chance of getting a better rate, so before you do anything else, give some thought to the possibility of beefing up the security of your property.
Before most insurance companies will do business with you, they require that you have a certain minimum level of protection in place, such as deadlocks on all exterior doors and locks on any windows that are easily accessible. However, going above and beyond that can result in lower quote prices:
lock with five levers and a mortice deadbolt
Discounted homeowner’s insurance rates for uncommon and listed properties
It is possible that you will receive fewer home insurance quotes or that the rates will be excessively expensive if your property is listed, has a thatched roof, or possesses some other uncommon feature.
It’s possible that working with an insurance broker will help you obtain more affordable coverage from specialised insurers.
Make use of the ‘find a broker’ feature provided by the British Insurance Brokers’ Association. You can visit Biba.org.uk or give them a call at 0370 950 1790.
Affordable homeowners insurance for those who rent or share a house
If you rent, the only type of insurance you’ll need is for your belongings; the building itself should be covered by your landlord.
Even while there are specific short-term insurance policies available as well as policies that cover a single room, we advise being cautious about using them.
Always compare the costs and levels of coverage offered by renters policies to what you could acquire from a more “conventional” form of contents insurance.
If you live in a shared residence, every person who lives there needs to have their name listed on the contents insurance policy. It is imperative that the facts be kept accurate and up to date at all times; otherwise, you run the risk of the insurer denying any claims that you submit.
Confused.com can provide you with an estimate for your homeowner’s insurance.
Affordable house insurance for property managers and landlords
Buildings insurance, possessions insurance, and liability insurance are the three primary categories of landlord insurance. Liability insurance protects you in the event that a tenant or visitor sustains an injury on your property.
There are additional add-ons available, such as home emergency protection and rent guarantee insurance in the event that your tenant falls behind on their rent payments (and in some situations, even if the property is vacant).
Comparing several policies and paying for only the protection you truly require is essential, just as it is when purchasing insurance for your own house.
Property owners who manage four or more rental units should investigate portfolio insurance products, which cover the entire property under one policy.