The biggest investment you will probably ever make is your home; therefore, it is important to select the right home insurance policy to cover it. Always compare home insurance products from as wide a range of companies as possible. Here are a few tips for finding the right one for you.
Shop around
Never go with the first home insurance quote you find or are offered. While mortgage lenders often also provide home and contents insurance, these are not always the best deals. So, do your research.
Only get what you need
Too much cover will cost you in monthly premiums; too little cover will cost you in the event of a claim. So, don’t take the level of insurance cover you need lightly; try to get the right amount for your situation.
Make sure you’re getting what you think you are
Just because an insurer has sold you a policy doesn’t mean you’re automatically eligible to claim on it. Read the fine print and don’t be afraid to ask questions. Get written confirmation of your home insurance quote and make sure you are covered exactly as you expected to be.
Don’t be coerced (tie-ins and bundling)
Mortgage lenders are always looking for new and inventive ways to increase their share of the market. Often, this is via low-interest mortgage deals, but the lender will also try to makes up for that low interest elsewhere. They may try to insist on compulsory and over-priced home insurance policies, which is known as bundling. Another ‘trick of the trade’ is the tie-in deal, whereby the lender applies penalties when the customer decides to go elsewhere for their home insurance. These types of deals should always be avoided.