High value insurance recommended
Wed 14 July 2010
Many insurance providers are calling on homeowners to shop around for the cheapest quotation for their home insurance policies in order to save their “hard earned cash”*; however there are concerns that these basic policies will not cover all of the home contents in the event of theft or damage.
A spokesperson for one of the price comparison sites in the UK said: “Shopping around for the best deal is quick and easy; by not doing so Brits are effectively watching their [...] cash go down the drain.”
29 per cent of people automatically renew their home insurance policies with their existing provider, although they could save £132 by switching providers. Switching to a cheaper provider may suit those who are looking for a more basic policy, but caution should be taken to read the terms and conditions before purchase.
Those who have a higher value of home contents, including expensive pieces of art or antiques, are recommended to seek a higher level of cover for their home, as many lower priced policies will have a limit on the goods they will insure**.
One insurance guide says: “Make a note of all your household possessions, attribute an accurate and up-to-date value to them and produce an informed estimate for your insurer. [...] You may find you have to pay a little more in premiums, but it is well worth doing so if it means you are well protected.”
*Source: Press Association at, http://www.google.com/hostednews/ukpress/article/ALeqM5iW1-FnG3P12qQiBcZ9-ayuak--Bg
**Source: Home Insurance Guide at, http://www.home-insurance-guide.co.uk/index.php/component/content/article/174-guide-to-choosing-home-insurance.html