comparing home insurance

Comparing Home Insurance ~ Don’t Just Look At the Price

The rise of price comparison sites has completely revolutionised the insurance industry. Gone are the days of ringing around every single insurance provider desperately seeking the best quote. What I like even more about price comparison sites is that you can not only find the best home insurance prices on the market but you can also compare the features of those policies, helping you to make a more informed decision.

Although comparison sites offer the opportunity to compare the features of insurance policies, I think many people are still in the habit of simply going for the cheapest price only to regret the decision when they actually come to make a claim. Here are some extra features you should be sure to compare when getting a quote for home insurance.

Compulsory Excess

When you’re filling out your details to compare home insurance quotes you will often be asked to enter your voluntary excess, usually from nought to £250. You may or may not know that many insurance providers place a compulsory excess on top of your selected voluntary excess. If applied these compulsory excesses can range from £50 to £250. If you’ve attempted to lower your premiums by increasing your voluntary excess you might quickly find yourself with a £500 excess, which a lot of people may feel to be too high.

What Are You Covered For?

Many comparison sites allow you to compare 3 or 4 of the best quotes in more detail. These detailed comparisons can be a great way for you to see exactly what each home insurance policy covers. This list may include details such as cover for locks and keys, cash, credit cards, frozen food; items in the garage, items lost or damaged away from home and the list goes on. Some insurance quotes may not provide cover for specific items such as these or the level of cover may differ greatly between each policy.

Legal & Home Emergency Cover

Some home insurance policies include extras like legal and home emergency cover as standard whereas others will charge extra for these features. So if one policy is £10 cheaper than another but you’re being charged £21.99 for the legal cover on the policy, you may find that a policy with free legal cover as standard actually works out cheaper.

Price Including Interest

If you pay for your home insurance on a monthly basis then it’s important to look at the price you are paying for the policy after any interest has been applied. The interest rate charged on home insurance policies paid for in instalments can differ from company to company. This means that the cheapest annual home insurance quote may not work out to be the cheapest quote if you’re paying for the insurance in instalments.

This list outlines just a few of the features a home insurance comparison site will allow you to compare. If you take just a little time to compare the details of each policy you should not only end up with a great price but also a great policy that fits all of your needs.

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7 Responses to Comparing Home Insurance ~ Don’t Just Look At the Price

  1. Good post Adam! Home Insurance can be a major thing, but one you hopefully never have to use. We have ours through USAA and will never change. They’re not the cheapest, but are competitive, but they’re the best in my opinion.
    John S @ Frugal Rules recently posted..How to Afford Your Summer Vacation IdeasMy Profile

  2. I went with the company that has my auto insurance because I have been with them for a long time and I really enjoy their customer service. There are a few plans that are cheaper, but I want to know that I will be taken care of if there is an issue and we need to get into our homeowners insurance policy.
    Grayson @ Debt RoundUp recently posted..Who Do American’s Look To As A Financial Mentor?My Profile

    • It’s funny you should say that Grayson because I’ve noticed a huge difference in the quality of service I’m receiving from my new car insurance provider, it makes you want to stick with them.

  3. When I lived in the UK I used comparison sites for everything I could to save money. In Canada I’m slowly learning about different sites but there’s not near as many as back home. Our insurances are bundled with the house and auto for the best deal although next year I think we will start looking around for a better deal if we can find it. Sometimes it’s hard to break free when you’ve been with the same company for so long. They’ve been good to me since some Canadian companies tried to rob me blind for my auto insurance. Good thing the wife had a good company that took me on and I had my records sent from the UK. Without them I’d been paying thousands per year.
    Canadian Budget Binder recently posted..What My Life Is Like With Terrible CreditMy Profile

  4. I would make 2 points:
    Firstly the majority of the cheapest quotes on comparison sites are from companies that you may never have heard of, but the underwriter is likely to be the same as a company that you have heard of, but you’re right I would always ask about their claims resolution history.

    Secondly, never assume that the company that gave you that great quote and deal 12 months ago, will look after you at your annual renewal! My experience is that you can always get a better deal if you shop around, than assume that your loyalty will be rewarded.

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