The do’s and don’t’s of insuring your home
We’re sorry the subject of today’s blog post is…well, boring! However, we happen to find insurance a rather thrilling subject, why? Because we LOVE saving money, and then using THAT money, to make more money.
When it comes to home insurance, many of us are happy to let our policy renew automatically, as with most things, we just get that ‘auto-renewal’ notice and let it ride! The problem is, these are the moments when we all have an opportunity to affect our outgoings for 12 months and more!
The reality is, being a loyal customer, it seems, no longer counts for anything. Yet insurance is competitive so you can shop around, even haggle — but insurers rely on us doing nothing.
Many people, when they’ve bought a new home, just sign up for the cover the mortgage lender suggests or they go with a ‘household’ name or the insurance product their bank provide. However there are tools and platforms online now that can make your search much easier and can definitely save you time and money.
If you would like to save yourself some money and ensure you get the right coverage for your home then please, keep reading:
Does a listed home legally need specialist cover?
According to the NFU Mutual (nfumututal.co.uk), the simple answer is “no”. But there’s a strong caveat: it costs more to rebuild a listed house, so on your policy, the rebuild cost must be sufficiently high, which will increase the premium. Also, NFU advises, if asked whether the home is listed, you must say so, or cover could be nullified.
How do I calculate rebuild value?
When you buy your home, the mortgage quote usually has a rebuild value, so use that. Or a surveyor can estimate it. Get in touch with your local surveyor who will be an expert in your area. If you don’t know a local one, find surveyors at the Royal Institute of Chartered Surveyors (ricsfirms.com). For unlisted homes, online calculators such as the Association of British Insurer’s calculator (abi.org.uk) are easy. You must register. And do make a note of the answer, as it doesn’t save it.
How do I find the right insurer?
You can use comparison sites, but you’ll still have to digest the small print later, and make sure you tick those boxes that ensure your details don’t end up god knows where online!
Should I try a broker?
There are pro’s and con’s to using a broker, they do all the leg work for you and can often find quotes that come in at much more competitive than you would have been able to achieve. Plus, a broker can run through all of the small print jargon for you saving you time (and a lingering head ache!)
And what about haggling?
At the very least, call your existing insurer and haggle. And don’t pay monthly — it ramps up the final cost.