Brits Missing Out On Home Insurance Savings

Whilst having a sense of apathy may mean that homeowners have one less concern to think about when renewing their insurance policy, such action may well leave them under more monetary pressures.

In research carried out by Tescocompare it was indicated that just less than two-thirds (64 per cent) of Consumers reached the decision to opt with their current building and contents insurance provider when they last had to renew their premium. Such a high number comes despite almost 44 per cent of Consumers facing an increase in the cost of their home insurance policy. Furthermore, it was indicated around four million of such people have seen their premiums rise at a faster rate than that of inflation. However, the price comparison website indicated that with the average home insurance policy worth some 283 pounds, had those approaching the renewal of their premium decided to switch for a more competitively-priced plan then they would have saved a total of some 26 million pounds.

The Tescocompare study also indicated that only just over a fifth (22 per cent) of people questioned who were facing a price increase above the rate of inflation considered switching supplier. Out of these consumers, only eight per cent found that they could not get the same level of cover for less money.

On top of paying out more money than required for a home insurance policy, it could be possible that people find that they are developing difficulties in managing further constraints on their expenditure. Such areas could well include credit and store cards, loans, mortgage repayments and domestic bills.

Additionally, it could be possible that a large number of people are willing to place themselves under additional financial pressures. Of those that decided to remain with their provider, nearly half feel that they were given a long enough amount of time to find an alternative supplier ahead of being hit with a price supplement although they eventually ended up staying put.

Paul Baxter, spokesperson for Tescocompare, said “The message behind this research is clear - many millions sleepwalk through their insurance renewal allowing their insurer to increase premiums unchallenged. Regardless of how loyal you are to your current home and contents insurer - you should shop around at each renewal to make sure you get the cheapest and most appropriate insurance for you.”

For those consumers seeking to carry out repairs to their property or purchase major household items - refrigerators, sofas and ovens for example - taking advantage of cheap loan might be recommended. The additional financial help that a cheap loan brings may also assist borrowers to take out a comprehensive home insurance policy which is also competitively priced to ensure that such things are covered.

A loan may also be of assistance for consumers wishing to insure their pets. In a new piece of research Sainsbury’s Finance revealed that 11 million Consumers do not have cover for their cat or dog, with around 4.6 million of such consumers believing such a premium is unimportant. Meantime, should consumers not have insurance for their animal they may have to dip into their savings should their four-legged friend fall ill, with the typical bill for vet treatment shown to cost about 300 pounds.