I HAVE just had my renewal quote for my home insurance come through from my broker and I will be buying a policy again in 2016. The renewal quote is for £109 for a full year’s cover. I’d need to be a mad man to bin that and hope that I don’t need to make a claim.
If my house burns to the ground, I can have it rebuilt and everything in it replaced for new by paying less than £10 per month. That’s incredible value for money if I ever need to claim on my home insurance.
But let’s get one thing clear, I am not expecting to pay £109 for my home insurance. I think I will pay less, possibly under £100 because I am sure my broker has not offered me the best price yet. If I shop around, I’ll get a policy for less than this first offer, I have no doubts, it is the way the insurance industry works and is something everyone should do.
It might take me 10-minutes to save £10 on my house insurance by either speaking with my existing broker or another. But that would equate to being paid £60 per hour, so in my book it’s worth doing.
I still need to be careful though. I need to make sure that I have my buildings rebuild value at the right sum. In my case, I moved to my home 13-years ago and I had a survey at that time for the mortgage. I have increased that by inflation each year to make sure the cover is at the correct amount. Effectively you add around 3% on top of last year’s requirement. It has never increased my house insurance cost to do this.
It’s the same for my contents insurance, I make sure it is up to date. Generally that has meant no changes in 13-years. My wife’s engagement ring is the same but worth a little more each year and that’s about it. I don’t add my bicycles to the home insurance policy, I think it is too restrictive and use a specialist insurance instead.
I have not had any claims in 13 years which is lucky for me and begs the question, if I had saved £100 a year for 13 years I’d be £1300 better off right now. But that’s a risk I am not willing to take. If my house burnt down then it would cost around £250,000 to rebuild and stock with belongings. I can’t afford that. I don’t know many people could afford that. I suggest that anyone that owns a home buys Home Insurance each year, it’s what I do.