More than ever, it pays to shop around for your home insurance cover.
Its always been a good idea to compare prices, excess amounts and cover before you buy. But recently, some of the big insurance companies have started to identify customers who are “sticky” - people that do not move their business when premiums rise. This means that people who regularly change insurers will get lower renewal quotes than people that do. In effect, loyal customers are penalised for their loyalty – just like the preferential “new customers only” deals offered by banks.
Home insurance companies make money by picking risks carefully, and by investing the money you give them when you pay your premiums. Your home insurance policy is really a gamble. You bet the amount of your premium that something really bad will happen to make you claim. The insurance company bets it won't. If something bad does happen, you are covered within the terms of your policy and the insurance company will pay out. The insurance companies' job is to be right a lot more often than they are wrong.
Insurers always try to limit their exposures to certain types of risk (like flood damage or fire), and try not to insure too many homes in any one area. That way, if the worst happens, they won't lose their shirt when everyone claims all at once. So even if you live in a low risk area and you've never had a claim, your home insurance quote might be uncompetitive if your house is the 20th house on your street that the insurer covers. It always pays to shop around....
If you need more information to decide what type of Home Insurance is the best for you, then check out
TheRateTart Guide to Home Insurance
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