Switching Home Insurance: Is It Worth It?

Many people stick with the same home insurance provider for years, assuming that switching is too much hassle or too costly. However, changing your home insurance provider is pretty straightforward and can save you money.

There are several benefits to changing your provider. You could save money by finding a better offer from another insurer, and you can ensure that the level of cover is correct for your property and belongings.

Saving money

There are many ways to save money on your home insurance. Firstly, it's important to shop around for the best quotes. While the cheapest home and contents insurance may not provide the best cover for you, you can still save money by working out which is the best home insurance for your needs, not just the lowest monthly premium.

Compare prices

Comparing prices from multiple companies will help you find the best deal. You can do this by going directly to insurers' websites and filling out a quote form, or by using price comparison sites. It's worth noting that not all insurers are on every comparison site, so a combination of both methods is ideal.

Increase your excess

If you need to make a home insurance claim, you may have to pay a small amount, known as the excess. The bigger your excess, the lower your premium is likely to be.

Improve your security

Fitting good-quality locks to windows and doors can make a break-in less likely, and insurers will see you as a lower risk, which can lead to lower premiums.

Check out combined deals

Sometimes, getting home contents and buildings insurance together can work out cheaper than having separate policies.

Build up a no-claims bonus

If you haven't made any previous claims, you're likely to be offered a lower premium.

Review your policy regularly

It's recommended to review and reassess your homeowners insurance policy every one to two years, especially if there's been an increase in your premium or any changes in your policy or personal circumstances that could affect your rates.

Better coverage

Switching home insurance providers can seem like a daunting task, but it's actually pretty straightforward and can have many benefits. One of the biggest advantages is the potential for better coverage. Here are some reasons why switching home insurance providers can lead to improved coverage:

• Reassessing Your Needs: When you switch providers, you have the opportunity to reassess your insurance needs. Your circumstances may have changed since you took out your current policy, and you may require a different level of coverage. For example, you may have accumulated more high-value items or made renovations to your home that increase its value. By switching providers, you can ensure your coverage is up-to-date and adequately protects your belongings and property.
• Finding a Better Match: Different insurance providers offer different types and levels of coverage. By shopping around and comparing policies, you may discover a provider that offers more comprehensive coverage or additional endorsements that better suit your needs. For example, you may find a policy that includes accidental damage cover, home emergency cover, or legal expenses cover, giving you more peace of mind.
• Filling Coverage Gaps: When reviewing your existing policy, you may identify gaps in your current coverage. By switching providers, you can address these gaps and ensure you have the appropriate level of protection. This is especially important if your circumstances have changed, such as starting a home business or making structural renovations.
• Customizing Your Coverage: Switching providers allows you to customize your coverage to fit your specific needs. You can choose a policy with higher coverage limits, add endorsements for specific items or risks, or bundle multiple types of insurance, such as home and auto insurance, with the same company. This ensures that your coverage is tailored to your unique situation.
• Taking Advantage of Discounts: Many insurance companies offer discounts for various reasons, such as having safety features in your home or bundling multiple types of insurance. By switching providers, you may be able to take advantage of these discounts and save money while also improving your coverage.

Remember, when considering switching home insurance providers, it's essential to do your research and carefully compare policies to ensure you're getting the best coverage for your needs. Don't focus solely on the cost; consider the types of coverage, endorsements, and additional benefits offered by different providers to make an informed decision.

Changing circumstances

Moving House

If you're moving to a new house, you'll need to take out a new home insurance policy for that address. This is a good opportunity to shop around and compare quotes from different providers to ensure you're getting the best deal and adequate coverage for your new home.

Changes in Personal Circumstances

Changes in your personal circumstances can also impact your home insurance needs. For example, if you're downsizing to a smaller property, such as a condo, your insurance needs may change, and a different insurance company might better serve your needs. Alternatively, if your personal circumstances have led to an increase in valuable possessions, such as jewellery or business equipment, you may need to increase your coverage or take out separate insurance for these items.

Changes in Rates

If your insurance rates have increased at renewal, it's a good time to shop around and compare quotes from other providers. You may be able to find a better deal or more suitable coverage for your needs.

Changes in Coverage Needs

Over time, your coverage needs may change, and your current insurance company may not be able to meet these changing needs. For example, you may require additional insurance for specific situations, such as sinkhole coverage, or you may prefer less restrictive coverage. Shopping around and comparing policies from different companies can help you find the coverage that best suits your evolving needs.

Changes in Customer Service

If you're experiencing poor customer service from your current insurance company, you may want to consider switching. Look for a company with a strong reputation for customer service and one that meets your expectations in terms of responsiveness and support.

Remember, you can switch your home insurance at any time, not just at renewal. However, there may be financial implications, such as cancellation fees or refund policies, so be sure to review the terms of your current policy before making any changes.

Poor customer service

Unjustified declined and delayed claims

Some home insurance companies have been criticised for their handling of claims, including unjustified declines, delays, and disputed payout offers. This can cause significant stress and financial strain for customers, especially if they are already dealing with challenging circumstances.

Lack of support for vulnerable customers

Vulnerable customers may face additional challenges when dealing with poor customer service. In some cases, insurance companies have been known to treat vulnerable individuals severely lacking, causing further hardship for those who may already be struggling.

Difficulty receiving owed money

In certain situations, customers may have to wait an extended period to receive the money they are owed from their insurance company, even after submitting the necessary invoices and documentation. This can result in customers being out of pocket and having to pursue their insurance provider for payment.

Inadequate processes for vulnerable customers

Firms are expected to have processes in place to support vulnerable customers. However, some home insurers have been criticised for not having adequate procedures, making it difficult for vulnerable individuals to receive the assistance they need.

High levels of complaints

Some home insurance companies have significantly higher levels of complaints compared to others. This can be a red flag for potential customers and may indicate a pattern of poor customer service. Checking complaint levels and customer reviews can provide valuable insights into the quality of a company's customer service.

If you are experiencing poor customer service from your current house insurance provider, it may be beneficial to explore other options. Switching insurance providers can seem daunting, but it can be a straightforward process that could save you money and provide you with better customer support. Remember to consider your specific needs, compare quotes, and research different providers before making the switch.

Additional cover

• Accidental Damage Cover: This covers any unintentional damage or loss caused by you or anyone living in your home. It provides peace of mind, knowing that accidental spills, breaks, or mishaps are insured.
• Home Emergency Cover: This type of cover is designed to protect you in the event of an emergency with your roof, plumbing, gas, or electricity. It ensures that you can get the necessary repairs done quickly to maintain the safety and functionality of your home.
• Full Legal Expenses Cover: This cover will take care of the costs of legal advice and representation if you need to take legal action or defend yourself against a claim. This can be particularly useful if you're involved in a dispute with a neighbour or a contractor.
• Cover Away from Home: If you want certain valuable possessions, such as jewellery or electronics, to be covered when you take them outside your home or even abroad, this additional cover is worth considering. It provides protection against theft, loss, or damage to your items while you're on the move.
• Special Personal Property Coverage: This type of additional cover provides broader protection for your personal possessions in a wider range of situations than a standard home insurance policy. It ensures that your belongings are covered against a more comprehensive list of risks.
• Contents Replacement Cost Coverage: This cover helps with the cost of replacing personal property based on its replacement value at the time of loss, without any deduction for depreciation. It ensures that you can replace your belongings with items of similar value without incurring a financial loss.
• Additional Replacement Cost Protection Coverage: This type of cover provides an extra layer of protection if the dwelling coverage on your home insurance policy falls short of covering the entire cost of repairing or rebuilding your home after a covered loss. It gives you the peace of mind that you won't be left with a financial burden if the cost of repairs exceeds your primary policy's limits.
• Earthquake Coverage: While not commonly required, those living in areas prone to earthquakes may consider adding this coverage to their policy. It covers structural damage, loss or damage to personal property, rebuilding costs, and temporary living expenses if your home becomes uninhabitable due to an earthquake.
• Windstorm Coverage: Similar to earthquake coverage, this add-on provides protection against structural damage, loss of personal property, rebuilding costs, and living expenses if your home is severely impacted by a hurricane or tornado.
• Flood Insurance: Depending on your location and risk factors, you may want to add flood insurance to your policy. It covers damage to your home's structure and your personal belongings due to flooding. Keep in mind that flood insurance is typically not included in standard home insurance policies.

When reviewing your home insurance, carefully consider your specific needs and risks. Evaluate the value of your possessions, the condition of your home, and the likelihood of certain natural disasters occurring in your area. By adding relevant additional cover options, you can ensure that you have comprehensive protection for your home and belongings.

Frequently asked questions