12 January 2016

Get a good deal on home insurance

Home insurance premiums have taken a tumble in recent years, so you may be able to get home insurance at a cheaper price than in the past.

The average property insurance premium dropped to £288 last year (PDF), according to the Association of British Insurers. This is an overall decrease of around 9% since 2012.

Research from the British Insurance Brokers’ Association (BIBA) shows that this three-year trend of falling insurance prices may be coming to an end.

Paying less may not mean saving more

It’s tempting to find the cheapest home insurance on the market, but a low premium can sometimes mean that the insurer has reduced the level of cover.

Home insurance is a product that covers you when you need it most, provided you are buying a policy that meets your needs. Base your choice on the level of cover that you would need to rebuild your property and replace all of your belongings, not solely on the price of the insurance.

Do your home insurance homework

To make sure that you get the cover that you require, spend a little time looking at the specifics of each policy that you’re considering.

We’ve listed four important things to check as a starting point:

1. Single item limits. You might have £1 million in contents insurance, but if your single item limit is £250, that policy may not meet your needs. Some companies also save costs by removing cover for smaller items, such as locks and keys.

2. Research your rebuild value. This should be based on the cost of rebuilding your home, not the price you could get for selling it. Some insurers are reducing premiums by basing the rebuild value of a property on the Royal Institution of Chartered Surveyors (RICS) calculator, but this can be up to 20% either side of the true value of rebuilding your home.

3. Check excesses carefully. If you haven’t purchased insurance for a while you may find that excesses are higher than you expect, even for relatively low-cost items. This is one way that providers with very low premiums make their money.

4. Don’t over-insure. Optional extras can be invaluable, but sometimes your standard policy will offer the cover that you need. It’s always a good idea to recalculate the value of your contents and think about whether there have been any changes in your household, such as building work or children leaving home.

How we could help

Our home insurance policy is competitive yet still offers comprehensive cover. Find out more about how Nationwide home insurance could help protect your home today.

Get a quote in less than 10 minutes

Nationwide home insurance policies are underwritten by U K Insurance Limited

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