If you are coming to the end of your current insurance term then ring around several insurers, as well as your current insurer, to see whether they can provide better cover at the same or lower price. You can often use the renewal quote from your current insurer as a bargaining point for getting a good deal.
Take a look at our Supplier Directory for suppliers of competitive house insurance, many with online quoting and buying.
When obtaining a quotation from an insurance company they will ask you for the re-building cost of your property as the Building insurance premium will be based on this amount. This is not the same as the current value of your property. Remember, if your house had to rebuilt it would not be necessary to re-purchase the land it sits on. Therefore, in most cases the re-building cost of a property can be less, sometime considerably less, than the current market value of your house.
It is very difficult to give an accurate figure to the re-building cost of a property. Most insurance companies can give you an idea based on where you live, the size of your property and whether or not you have a garage and double glazing.
The value of the contents of your home is also a very difficult thing to judge accurately. Most people under-estimate the value of their contents as they forget such items as carpets, curtains, kitchen units and other general furniture. Many insurance companies offer insurance for a catch-all amount, e.g. £60,000. However, if you live in a small property this may be well in excess of your requirements and you are, therefore, subsidising other peoples insurance. However, most insurance companies will allow you to specify an amount which should then cover all the contents of your home.
Always check with your insurance company whether they provide “new for old” cover or just “replacement”. If you had a carpet that was 5 years old and it got damaged, new-for-old cover would provide funds to replace the carpet with a new one. However, if you don’t have new-for-old cover you would probably be given an amount equivalent to the current value of your carpet.
As with all insurance quotations, always read exactly what is and what is not covered by the quote. Only compare like-for-like quotations otherwise you may come unstuck if you need to make a claim.
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