Renewing Contents Insurance – Time for a Change?
Loyalty is universally accepted as a commendable character trait. Attachments to friends, family, companies and even our favorite products can give us a sense of security and many of us will choose a particular brand over a cheaper option because we like knowing what to expect. However, increasing numbers of us are finding that financial constraints are challenging our own personal preferences as we search for ways to save pennies.
Taking a look at one woman’s experience as a loyal customer in a BBC article and it appears that now more than ever ‘shopping around’ has become an acceptable but above all a necessary way of life for money-savvy shoppers.
Contents insurance is no different – it pays to think twice about staying with your current provider.
Which Type of Home Insurance Do I Need?
There are three different types of insurance available for protecting your home. The first is Buildings insurance which covers the property’s permanent structures. The responsibility for organising buildings insurance normally lies with whoever owns the property or the leaseholder.
The second is optional cover called Emergency Cover. This type of cover deals with home emergencies such as electrical faults, plumbing leaks and boiler repairs and can provide extra security, complementing buildings and contents insurance products.
Everyone who lives independently and is responsible for their own possessions needs the third type of home insurance, tenants and homeowners alike, young and old. Contents Insurance policies protect your private things, items you would expect to remove from the property if you moved.
What is the Best Contents Insurance for Me?
You may have had contents insurance with the same insurer for several years without any complaints and you may be one of the lucky few who are already getting the best deal possible. While the price of your policy is often the first consideration when deciding if and when to switch provider there are other things you should remember when comparing what’s on offer.
1. What’s the Simplest Way to Get Quotes?
The best place to shop around is online. Comparison sites are a useful tool but don’t forget to get quotes directly from other insurers as well. There are also several companies who offer tailor-made policies for particular groups, for example, students, disabled people, even people of a certain political or religious persuasion. It is vital that the insurer is a trusted company with stellar reputation. Age UK is a solid example. You can get a contents insurance quote from AgeUK here.
2. Does the Insurer offer ‘New for Old’ Cover?
Check that the policy covers the cost of replacing items at today’s prices – not what they were worth when you bought them. Make sure you include the cost of everything you possess that could be lost when adding up the total.
3. What is the excess?
Most policies have the option to lower the premium if you accept a higher excess, the amount you will have to pay towards replacing your possessions when making a claim. Be reasonable – don’t set your excess unrealistically high.
Whichever insurer you choose be prepared to do it all again next year to make sure you always get the best deal available.
Image credit: http://www.ageuk.org.uk/products/insurance/home-insurance/