Money Matters: The importance of having home insurance, and how to get the best deals
In this week’s Money Matters column, Wrekin’s Debt and Energy Manager Dan Bebbington weighs up the importance of having home insurance against rising policy costs.
Home insurance is a vital safeguard for protecting your home and belongings, but prices for renewals and new policies are, like everything else, rising.
Whether it's your furniture, electronics, or personal valuables – plus the building itself if you’re a homeowner – having insurance ensures that you're covered in case of damage, theft or unforeseen disasters like fire or flooding.
Without it, repairing your property and/or replacing your possessions could come at a huge cost.
In that respect home insurance also offers a sense of security, in knowing that if that worst was to happen, you would at least be spared the financial strain that such incidents can bring.
However, we also know that these are exceptionally hard times for many households, and for many people the decision to take on another monthly expense on top of your essential bills is not an easy one.
When you consider how much the cost of home insurance policies is rising, it’s not surprising that many people are choosing to take the risk because they can’t afford it.
According to Martin Lewis, policies have risen by an average of 40% this year alone.
Despite this, is it a really important safety net to have. And it may not be as expensive as you think, if you can find a good deal.
The first thing to remember is never let your existing policy renew automatically. You will likely be able to find a better deal to switch to, or use as leverage to get a better deal from your existing provider if you want to stay with them.
Before taking out a policy, you should carefully assess your needs and the value of your belongings to determine the coverage level you require. This will mean you get the right amount paid out if you need to make a claim, but will keep your premiums as low as possible.
Then, shop around and compare quotes from different insurance providers.
As well as the price, consider the extent of coverage, any excess you’ll need to pay if you make a claim, and the insurer's reputation for customer service and claims handling.
Utilise online comparison tools, and, once you’ve found a policy you like the look of, check the provider’s reviews with the likes of Trust Pilot before taking out a policy. You should also make sure they’re regulated by the Financial Conduct Authority.
If you buy through a cashback site, you could get some of the cost back.
Alternatively, Wrekin Housing Group customers can take advantage of affordable home contents cover, for more information visit www.wrekin.com and search ‘Home Contents Insurance’.
23rd April 2024