Frugal Tip: Why You Should Review Your Home Insurance Policy Regularly

As a property owner it’s natural that you want to find the best home insurance.

However once the initial deal is sealed it’s normal to forget all about your policy in order to concentrate on “more important” matters in your life.

However as it turns out this “set and forget” policy might not be the best solution – and you could discover that you’re spending considerably more money than you necessarily need to.

It’s a smart idea to review your policies on a regular basis and switch providers if necessary – here are a good few reasons why.

Plenty Of Competition

When it comes to home insurance, there is plenty of competition out there. Companies are constantly battling to lure in new customers, so it’s a good idea to keep an eye out for lower premiums, affordable monthly rates and reduced interest charges.

While it might not be possible to break your contract straight away, it’s worth doing a little research to ensure you get the best possible quote when the time comes.

Renewal Costs Can Skyrocket

These days, many providers save their best offers for new customers. This means if you got a great deal last time, you might not get it again. Sure, loyalty should be rewarded, but this isn’t always the case, so don’t let your policy renew automatically.

Instead, make a note of when your insurance will expire and contact the company to find out any new rates. If they jump up significantly and become unjustifiably high, jumping ship could save you a whole lot of money.

Contents Insurance Might Change

There are two main types of insurance, buildings and contents cover. While the former protects the physical structure of your home, the latter safeguards your personal property and is often subject to change.

As a result, it’s essential to review your policy regularly and to get updated contents insurance quotes if necessary. Of course, you don’t want to over insure as this could prove expensive, but it’s wise to cover anything that is of importance to you.

Buildings Insurance Might Change

If you have recently renovated your home or carried out an extension, it is well-worth getting another building insurance quote. Remember, you should insurance you home for the amount it would cost to build it from scratch including architect and labouring fees. If you’re not sure what this amount would be, you could hire a surveyor or take a look at the Association of British Insurers’ calculator.

With so much to do on a daily basis, it can be tempting to forget all about your home insurance, but reviewing prices and knowing the market could save you a lot of money in the long run.

David Hoffman via Compfight

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