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People may not renew Home Insurance to save money

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1 in 12 homeowners are considering not renewing their home insurance when their current policy comes to the end of its term and its due for renewal.

Research from an insurance comparison site has shown that 8% of people are considering not renewing their home buildings insurance, and 8% are considering not renewing their home contents insurance. 

The information comes from a survey which questioned 2,000 adults in May.  It found that homeowners are looking to make cutbacks, as in the economic climate, they struggle to ‘make ends meet’.  Others looked to be saving money in other areas such as home maintenance projects, and decorating.

Although it is not a legal requirement to have home buildings insurance, it is usually compulsory if you have mortgaged your home, or if you rent, some landlords request you take out home contents insurance separately.

False Economy?

Although looking to have a review of finances is going to be a priority for many in the current climate, looking to save money on insurance by not having it can be a false economy.

The cost of rebuilding a property after having a fire, flood or other natural disaster can run into the tens of thousands, and with what is predicted to be one of the UK’s worst winters looming, home buildings and contents insurance could provide the cover should any repairs be needed.

Similarly, it is important to not put off home maintenance if the job is important.  Putting off jobs such as structural repairs can save money short term, but certain repair work can lead to further damage, costing more in repair bills in the long run.

Rather than simply not renewing an insurance policy, as an alternative people should look around for an insurance policy that offers better value for money - providing the level of cover that they need at a price they're happier with. 

The survey showed that only 22% of those questioned had changed their home insurance in the last 12 months, and that 14% had never changed.

 

By Ben Malkin

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