National Society

In a recent survey carried out by a group of financial researchers, it was discovered that more than eight out of ten Britons are turning to the internet in a bid to find cheap house insurance.  As well as trying to save money, it was reported that, for those that led very busy lives, being able to compare house insurance on the internet was important.

Insurance comparison sites can provide policy deals quickly and the websites are created to be as user friendly as possible, making any search results easy to understand.  Having resources available to them that allow the public to search such a large number of providers in one go is particularly useful, especially as the country has seen an increase in the number of policies available.  The survey revealed that a 19% growth in the number of buildings insurance policies was seen between 2008 and 2011.  In addition, there was a growth of 15% in the number of home contents insurance policies available.

The research also found that customers were willing to switch providers in order to gain the best deal, with around 34% of insurance policyholders changing their provider between the 2009 and 2010.  Even though they found that the number of people looking to save money by cutting the cost of insurance had grown, which is positive news for the insurance industry, the findings also showed that customers were not loyal to a particular provider when it came to saving money.

Like car insurance, house insurance is generally a must in the UK. This is especially true in the case of homes that are bought on mortgage, because any damage to the property must be repaired, this means funds must be available to pay for the work required to bring the house back to standard. However, unlike car and house insurance, contents insurance is very much at the buyer’s discretion. Contents insurance covers your personal belongings against theft or certain types of damage. For people who have many valuable items, it is advisable to invest in at least a basic level of contents insurance, as they are not only costly to replace, but they are also more prone to being tempting to thieves.

Contents insurance can save money in the long run when disasters are taken into account. However, most of us are looking to save money, but not every insurance company offers the same value with their cover. Luckily there are numerous ways to compare contents insurance providers such as Policy Expert, the number one way being to compare premiums on the internet. A wide range of price comparison websites have given rise to a new industry, whereby insurance providers put themselves up for comparison against their competitors. This enables consumers to find the deal that is best suited to their exact needs. Of course, most insurance is competitively priced when the reputation of the provider and specific terms of the contract are taken into account. Always be sure to read the fine print in order to judge how well each option is priced.

Whilst universities and colleges typically provide contents insurance for those staying in their halls of residence, as soon as a student leaves those halls and has to find accommodation in the so-called “real world”, they will need to find insurance cover, unless they are already covered under their parents’ contents insurance. Unfortunately, student residences provide an attractive target for thieves, as laptops and ‘smartphones’ are generally considered essential items for students in today’s hi-tech learning environments.

Students’ Contents Insurance
 
The National Union of Students (NUS) recommends that students organise and arrange their insurance requirements before they arrive at their new accommodation, since their contents are likely to be most at risk during the first few weeks of the academic year. The NUS preferred provider has created a cheap contents insurance package tailored especially for students. As well as covering home contents valued at up to £3,000, this package includes a 24-hour gadget replacement line and students can add a range of extras to cover such essentials of student life as bikes, musical instruments (for music students) and coursework materials.

Student Contents Insurance From Other Providers

Of course, students are free to choose policies from a number of providers, not just the one recommended by the NUS. A number of other insurance providers such as Policy Expert have created cheap contents insurance for students, and all the major high street banks have student advisors who may be able to provide coverage through the bank. However, it pays to remember that an advisor attached to a specific institution, whether it is a bank or an insurance company, will be trying to sell their own products rather than providing impartial advice. It always pays for students to talk to an independent financial advisor before making a final decision.

Whether you are shopping around and comparing home insurance quotes as a new homeowner, or looking for a way to lower your current house insurance premiums, there are steps you can take to reduce your monthly house insurance payment.

Taking the time to compare home insurance quotes is probably the simplest and quickest way to reduce premiums.  Visit various insurance websites and take advantage of the instant quotes they offer. You might also think about purchasing your car, house, and/or life insurance policies with the same insurer. Very often companies will reduce your premium if you buy more than one policy.

Improving the security of your home and property is an almost definite means to lowering your premium. Installing a burglar alarm, sprinkler system, or new locks on windows and doors are all measures that can reduce premiums. Another idea is to establish a neighbourhood watch group in your area.

Raising your deductible is another option if you are seeking to minimise that monthly cost; the higher your deductible, the lower your premium. Increasing your deductible twice over, may save you as much as 25 per cent. If this is an affordable option for you, it is an easy way to cut monthly costs.

One last alternative is checking the value for which you have insured your house. Buildings insurance covers only how much it would cost to rebuild your house from scratch, so do not include the value of the land on which your house is situated.

Your monthly premium is certainly not a fixed rate. With some smart choices, you can reduce it and save money.

Over five million people in the UK live in properties at risk of flooding from the sea or rivers.  In the floods of 2007, around 55,000 homes and businesses were flooded leading to nearly £3 billion in insured losses.  Many insurance companies will offer flood insurance as a standard part of your buildings insurance package.  This is one less thing to worry about for most of us, but if you live in an area prone to flooding, it may be a good idea to take out an individual flooding policy on your house insurance. 

If you are unsure about the risk of flooding in your area, you can check the environment agency’s flooding map.  In normal circumstances, if the risk in your area is classed as ‘low’, your house insurance should cover flood damage as a matter of course, though it is certainly worth checking with your insurer.
 
Flooding insurance is widely available across the UK, though the amount of cover you can buy will vary.  This is usually determined by the level of risk posed to your property and is influenced by factors ranging from what your local council is doing to prevent flooding to any removable flood defence products you have bought for your home.  Your insurance company may also ask for an independent risk assessment before settling on your premium.

Whatever your position, it is best to be prepared.  Always be aware of what you are and are not covered for, and doing some research can really pay off when it comes to cheap home insurance premiums.

Given the amount of investment we put into our homes, the importance of safeguarding that investment against damage or loss comes as no surprise.  There are some 620,000 home insurance claims each year, averaging in the hundreds of pounds.  With the cost of repairs often much higher than many can afford, it is no wonder that home insurance is vital for the modern homeowner.

Home insurance normally comes in two separate forms, though they can be bought together in one policy.  Buildings insurance covers the cost of damage to your property’s structure and permanent fixtures both indoor and outdoor.  Premiums are calculated by considering the cost of your home to rebuild (though this is usually lower than the market value).  Buildings insurance normally covers various forms of damage, most commonly; damage from the weather, floods, and fire, damage by malicious intent including vandalism, subsidence, and damage caused by vehicles, trees, or aircraft.

Contents insurance is based on the value of possessions inside the house and ranges from jewellery to televisions.  This is usually calculated by the homeowner and involves a ‘sum insured’ that represents the total value of the house contents. 

Whilst it is possible to buy the two together in combined policies, it common that only buildings insurance is purchased alone as this is the cover required by mortgage lenders.  Different policies vary in cover, as do the needs of each customer, so be sure to shop around to find the best possible deal.

When it comes to landlord insurance there are many different covers. Some include both contents and buildings insurance, whereas some do not.

If you are looking to rent or let a property for the first time, take your time to research existing landlord insurance policies to find the one suitable for you.

From February 2005, letting agents are no longer legally allowed to advise you to buy a certain insurance cover, or sell you a particular cover unless they are authorised to do so by the Financial Services Authority (FSA) or they are directly regulated by a broker who is registered with the FSA.

High-Risk Tenants

It is possible that a mortgage lender or general insurer decides not to grant cover to your property because of the tenants you wish to rent your property to. Be aware that renting your property to students, multiple single sharers and people who receive state benefits will make it harder to find a company to grant you a suitable landlord insurance.

Don’t Forget!

If you fail to inform your insurer that you are letting or renting a property within a certain period of time, your claim could be affected. As the landlord, you are responsible for insuring the exterior part of the building as well as your own contents, fittings and fixtures.

Some people get confused at the different forms of insurance available for their home. For example, there is buildings cover and there is also contents cover.

The simple difference is that the buildings insurance is exactly what it sounds like – it covers the actual building and nothing else. Contents cover is everything that is inside it that is not nailed down, as the saying goes. Most people will look for both.

When you are looking for home insurance quotes, look for each type of home insurance in turn. For example you could start with buildings insurance and then move on to contents insurance. Neither one is required by law; although in practice most people need buildings cover in order to be approved for a mortgage on their property. If you are going to get both types of insurance look out for potential deals for getting both with the same company. This can be a good money saver and it can also make life easier for you as you will only have the one company to deal with.

Once you have the difference between the two types of home insurance clear in your head, you can look for home insurance quotes that will suit you. Most companies will provide the basic details of their policies for you to look over before you get a quote. You may find this useful too when it comes to comparing different ones.

When you apply online for a home insurance policy, you will receive a quotation based on the information you give the insurance company.  You must make sure all the information you provide is accurate, otherwise the quote you receive might not match up with your requirements.

It is also your responsibility to check all the details of any quote you receive as this will enable you to make sure they are correct.  If you spot any errors, be sure they are corrected before you agree to take out a policy. In addition to this, you should check all the information given when you do agree to a specific policy and your documents arrive in the post. It is very rare for any errors to be made but you should always have the peace of mind that you have checked everything thoroughly.

For instance, you may have provided a certain piece of information in good faith when you asked for the home insurance quotation.  However, if you later discover this information is incorrect, you must bring this to the attention of the insurance company. By making these checks before you start paying the premiums for a policy, you will be able to ensure the changes are made in good time.  This will speed up the process of getting exactly the right policy agreed with you, so your monthly premiums can begin.

When you approach an insurance company to ask about home insurance, you will be given various options.  Most have a wide range of policies to choose and a choice of excesses.  The higher the excess, the less the premium will cost.  Payment terms are often flexible as well, with most companies offering a choice of monthly, quarterly or annual, which operate for the life of the policy.

Obtain several home insurance quotes and make a careful comparison of what each of them offers.  Insurance companies are all different and if you look carefully you should find a good match for the kind of insurance you wish to buy.

When you ask for home insurance quotes, be sure to ask specifically about any special insurance cover you require.  If you have a house that is subject to flooding, for example, be sure to get a quote that either includes it as standard or to which it can be added.

Read through the quotes carefully to make sure you are comparing apples with apples.  Do not bother trying to compare policies that do not include what you need against those that do.  It will only confuse the situation and will not be helpful.  Tell the agent or broker what you need by answering all their questions about your property as fully as possible.  Insurers can provide you with information about anything that you might wish to cover, but if they are not aware of it they cannot help.  It is better to know exactly what you are buying cover for, at the time you purchase it, rather than after the disaster has struck and you find you are not insured.