Financial Health Check – Making sure your home insurance policy is right for your needs

Buildings insurance is usually a conditional requirement of your lender if you have a mortgage.

With so many products on the market, it’s easy to get bogged down and lost in detail, and to potentially get caught out when you need the policy to pay out – if you do not check the finer details of the policy you buy.

Quick need-to-knows

  • Buildings insurance for your home typically protects its structure and permanent fixtures.
  • Home insurance will usually cover damage from causes such as storms, flooding, fire, lightening, theft and vandalism.
  • Home contents insurance typically covers the moveable possessions in your home, garage or outbuildings (within limits).
  • Depending on the type of property you own, you can often buy combined buildings and contents insurance – which can be cheaper than two separate policies and has the advantage that there is no risk of disputes between two separate insurers in the event of a claim.
  • Insurers often have options to add extra cover such as cover for personal possessions away from the home, home emergency and legal cover. If you are thinking of including extras you should always check that you aren’t already covered for the risk already under any other policy you have. For example, some car insurance policies may include legal cover, so be careful that you’re not heading for paying for something twice.

We have put together a quick guide on some basic pointers to look out for when shopping for the right policy at the best price.

If you would like to speak to an expert, get in touch with a Linear Insurance Adviser as they can source across a range of insurers and provide no-obligation advice on the best policy to meet your needs.

  1. If you just buy on price – it is likely to be at the expense of the quality of cover provided

Using comparison sites can seem like a great way to find the cheapest insurance, but it is too easy to end up with insufficient cover. This can end up being much more costly when you need to make a claim.

If your insurance is up for renewal, don’t simply shop around online for a cheaper quote. Moving to a new provider at a cheaper cost may seem attractive, but you may end up with inferior cover without realising it until it’s too late.

A Linear Insurance Adviser will take the time to explain the differences and compromises that make some insurance policies seem attractively cheap upfront, and horrendously expensive when it comes to making a claim.

  1. Check the policy excesses carefully

When searching on price, be mindful to check whether the insurers have inflated the policy excesses in order to bring down the cost of the premiums. Excesses are the amounts you have to meet towards your losses in the event of a claim – and policies typically have variable excesses for different types of claim. If your excesses are high, the price of your “low cost cover” will be reflected in the amount(s) you can effectively claim for should you suffer a loss.

Don’t be blinkered towards lower premiums without considering whether the excesses are amounts that you are comfortable with covering from your own pocket.

  1. Check if your policy covers pipe leaks and sewage blockage

If not covered, this can be a real headache to homeowners when they need to make a claim that is related to this cause. Check if your policy covers “trace and access” to find and repair the source of a pipe leak. Likewise, check to see if you are covered for blockage of sewer pipes.

  1. Check your policy is not set to auto-renew

If your policy has any element of auto-renewal you could end up paying too much. While it may be the easy option just to “do nothing” and let a home insurance policy renew, it is better to review these annually for a couple of reasons.

Firstly, you may find a better quote for the same cover than your current insurer’s renewal… so you can get on the phone and ask them to beat or match it to save you switching policies!

Secondly, and often overlooked, your cover needs may well have changed since you took your policy out, such as purchasing something valuable that needs insuring.

The best option is to enlist the help of a Linear Insurance Adviser who will review your insurance with you every year and make sure you are always getting the best price for the cover you need.

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Let Linear Financial Solutions help you

We have local mortgage advisors across the UK. It is always best to speak to a mortgage advisor who can help you find the best deals for your circumstances.

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