Martin’s Money Tips Home Insurance – If something drastic occurs to your house, like a fire, a break-in, or storm damage, home insurance will protect you. Your circumstances will determine the type of insurance you require. If you rent or own a leasehold property, for instance, you typically won’t need buildings insurance to cover the structure of your home because this will be the responsibility of the landlord or freeholder – though do check.
While we wouldn’t hesitate to spend money on remodeling a living room or bedroom, giving someone money “just in case” they experience some sort of unfortunate event always makes us feel a little bad. However, if you end up paying too much for that “just in case” scenario, that hurts even more. Therefore, everyone should consider obtaining contents insurance because it protects against the loss or damage of their personal property.
Martin Lewis, a finance guru from Money Saving Expert, has warned to check their home insurance policies and shared Martin Lewis’ tips on your home insurance. Speaking on ITV in 2020, he suggested homeowners check their policies frequently to prevent overpaying. He said, “The real costs are incurred by those who simply opt for auto-renewal without first comparing prices. You should therefore sit up and take notice if you haven’t changed your home insurance provider in the past 12 months.”
Not only that, Martin also suggested doing so could help homeowners save hundreds of pounds by taking a few easy steps. So in this article, we’d like to share with you Martin Lewis’ tips on your home insurance.
Martin Lewis’ Tips on Your Home Insurance
‘The big thing to understand is with home insurance it’s one of the prime areas where insurers use a thing called price walk-in’ he says. ‘What that means is you get your quote in the first year, and it’ll be competitive. And then if you don’t change a year after that they walk the price up slowly, maybe 5 per cent.’
- Never Auto Renew Home Insurance
Home insurance costs will continue to increase marginally yearly. After five years, it could be up to 50% more than your initial quote without any justification. This is why it’s important to follow Martin Lewis’ tips on your home insurance, to never just let your home insurance automatically renew.
Martin gave the example of a person who, despite making no changes, saw the cost of their home insurance increase to £600 after purchasing it. They said that the insurer used their information and received a renewal request for £600 in insurance. Then they changed their insurance, and only paid £146 for new insurance. They were cursing themselves for not doing this off earlier.
- Compare and Find The Cheapest Option
Martin did point out Martin Lewis’ tips on your home insurance without switching. You can still purchase it as a new customer if you visit a comparison website and discover that your current company offers the cheapest option. The finance specialist advice, “Just go get it as the new customer offers from the comparison site that you were using.” That is the farce in this situation. In essence, insurance companies like to penalize people for their apathy, laziness, and ignorance. If you choose not to take action, you will receive a fine, and the insurer will make a tidy profit.
Martin Lewis also advises comparison shopping on websites before your homeowner’s insurance is up for renewal, as one of Martin Lewis’ tips on your home insurance. A few different websites, such as Money Supermarket, Confused.com, and Compare the Market, should always be tried. Don’t forget to look into offers from companies like Direct Line and Aviva that comparison websites might overlook.
- Time to Look for New Insurance Deal
The peak time to search for a new policy, as per Martin’s money tips home insurance, is three weeks before your home insurance is about to renew. Martin said, “We actually mapped 3 million house insurance quotes to figure out how the price fluctuated with the time you got it – this is for reviewing new bids, not your renewal.”
As you approach the three-week mark before your renewal is due, you find a sweet spot where the price reduces. If you are getting a quote, the cost will increase as you approach closer to your renewal date and, if you get a quote the day before renewal, it may be nearly double the price. Simple logic explains why that is. The last-minute insurers are typically riskier because insurers base their rates on risk, and that is what Martin explained in Martin Lewis’ tips on your home insurance.
- Watch Out Falling Into The Trap
When purchasing new homeowners insurance, Martin Lewis warns against making the common mistake of only insuring the value of your home. Instead, you ought to insure the expense of rebuilding your house in the event that it were to be destroyed. Martin Lewis’ tips on your home insurance stated to be careful not to under-insure your home’s goods.
Everything in the contents would spill out if you turned your house on its side. Underestimating these costs will only secure a portion of your belongings, even if it means tallying up the cost of the pots and pans in your kitchen.
That’s four Martin Lewis’ tips on your home insurance we’ve done to compile. Don’t forget to pay attention to your home insurance, as contents insurance guards against the loss or damage to one’s personal stuff, but don’t overpay it.