Do You Waste Money By Sticking With Your Home Insurance Provider?

By Julian Stone
Do you stick with your existing home insurance provider at renewal? If so you could be wasting over £120 just by not shopping around.

Research by MoneySupermarket shows that homeowners are wasting a staggering £667 million a year, or an average £125 per household, just by sticking with their existing home insurance provider at renewal. A third of homeowners automatically renew their home insurance with their existing insurer rather than shopping around to find a better deal. Of those loyal customers, 20% don’t think they can find a better deal, and 11% simply can’t be bothered to take a little time to shop around.
Brits stay with their insurer for three years on average and almost half of homeowners have been with the same insurer for over two years.
Some 7% of homeowners have been with the same insurer for an amazing ten years or more.
Peter Harrison, insurance spokesperson at MoneySupermarket, said: “Having the choice to automatically renew your home insurance is an appealing option for time-poor homeowners – but ask yourself, is it worth paying such a hefty price for the convenience?
“Shopping around for the best deal is quick and easy, but by not doing so, consumers are effectively watching their hard earned cash go down the drain.
“While mortgage providers strongly insist homeowners have adequate buildings insurance, it makes financial sense for every household to have combined buildings and contents insurance in place.
“Combined policies tend to offer the best value as well as providing comprehensive cover for your home and garden against problems such as subsidence, burst pipes, and personal liability, all of which could land you with a bill for thousands of pounds. This is in addition to more common incidents such as burglary, accidental damage or loss of possessions away from the home.
Without having cover in place you could end up having to foot a very expensive bill.”
MoneyHighStreet comments: “At a time when most are trying to save money it is crazy to think that so many homeowners don’t take the time to compare home insurance deals when their renewal hits. Using comparison websites such as MoneySupermarket.com, Confused.com and Gocompare.com this comparison can be done quickly and efficiently.
“That said it is important to buy the home insurance cover you need. Don’t cut too much out or just opt for the cheapest price if as a result you end up with an inappropriate policy.
“When assessing the policy you need, don’t forget to make sure your valuable collections are fully covered and indeed if you have recently inherited anything that these items are valued and included too.