Last year, the average cost of home insurance fell to £300, the lowest price since the Association of British Insurers (ABI) began collecting data over a decade ago, in 2012. Why has the price dropped so much and how can you take advantage of the low price?
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
The information in this article is provided by All Med Pro – specialist insurance providers to the dental and medical sectors.
Home insurance prices fell so much because of the competitive market, despite the fact that many homes were damaged by turbulent weather. Subsidence claims and payouts for frozen pipes surged, and at the same time, the cost of building materials and labour increased along with everything else as the cost of living crisis raged on.
But The Financial Conduct Authority (FCA) introduced new pricing rules for home insurance renewals, which kept them consistent with new customer prices. It’s important to remember that even with these reforms, premiums for both new and existing customers depend on many factors, and you will need to discuss your individual needs with your provider to get an accurate estimate.
What kind of home insurance should you choose?
Home insurance is not a one-size-fits-all deal, you’ll need the right mix that’s customised based on your needs and individual circumstance. Here’s a quick overview of what kinds are available:
- Buildings and contents insurance — provides a comprehensive cover that protects you, your family, and your belongings against a range of risks
- Buildings insurance — covers the cost of repairing or rebuilding the structure of your home in case of damage due to a fire, flooding, natural disasters or storms. Outbuildings like garages, sheds and garden walls are also covered
- Contents insurance — protects everything inside your house from theft, loss or damage caused by certain events such as fires and floods
Property coverage provides peace of mind
If you do not have sufficient buildings and contents insurance, you may be on the hook for any costs associated with repairing or replacing items in your home. Depending on what you need repaired, it could mean that your bank account is thousands of pounds lighter. If you live somewhere that is prone to certain natural disasters, buildings insurance could be particularly useful to you since you can be sure that your property is covered in case the worst happens.
Remember to check your policy to ensure that all potential risks are included and to confirm the levels of cover you have for both buildings and contents insurance. Don’t forget to list valuables separately on your policy so you can adequately protect them.
Need help determining your home insurance needs?
No matter what kind of home insurance you’re looking for, All Med Pro can help you choose the right one for your home and family. It’s crucial that you shop around and compare policies from different providers so you can get a good value policy that meets your needs, but there are so many options, how can you be sure which one to choose?
The experience of the team at All Med Pro within the dental and medical industry, means you can be confident that they will find the right policy for your home and contents to be covered.
Want to discuss your insurance options with the friendly, knowledgeable team at All Med Pro?
Call: 0203 757 6950 or email [email protected]