THE fact is Black Friday and Property Insurance don’t really mix very well. The problem is that property insurance is a notional product based on many various risk factors and there is no set price, it changes from customer to customer. That makes it very difficult to advertise any sort of cost saving.
If you are going to buy a flat screen TV that costs £1000 normally but is only £750 on Black Friday, then you have saved £250 or 25% – a significant saving.
When it comes to property insurance, you the home owner, has no idea what prices the insurance underwriters have for your sort of risk. There is nowhere that you can really see this apart from asking for an insurance quote, that is valid for only 30-days.
Some brokers or insurers may offer a discount on your home insurance to catch your eye. If they say 25% off the problem is you don’t know what the 25% is coming off. They simply quote you a price. Some may say that they will take the 25% off at the end of the quote, but the cynic in me says what is to say the price is competitive to begin with? Maybe it’s already 30% higher than the best the market has to offer – the fact is unless you shop around you will not know.
The average home insurance policy will cost around £200 for buildings and contents. A 25% saving should see that come down to £150. But without knowing the actual cost price of your insurance, the price demanded by the underwriter, how do you know if you have any discount at all?
Property Insurance companies are regulated by the FCA and should treat you right, but the line between marketing and regulation can be blurry at times.
Instead, I prefer the absolute offers that you can access in property insurance. Things like price guarantees to beat any other quote. That means you can go to that broker with confidence that you can achieve a saving, even if it is only £1 or maybe a lot more. You need to challenge the broker to do this.
Only the very best brokers with access to market leading rates can do this. They can afford to beat the price of others because they will sacrifice their own commission to win your business. If the lowest price available is £150 and they promise to beat it, then they can reduce their commission by 5% and sell it to you at £142.50. You are happy, they are happy and everyone wins.
For The Home Insurer, every day of the year is Black Friday as they offer this sort of price beat all the time. Now that is something you should consider when buying property insurance.