Some UK home owners pay too much for house insurance, says report

A report confirms some UK home owners are collectively overpaying almost £1.3billion per year on house insurance

12:38 25 November 2012

It is safe to say that most home owners in the UK do not have extensive knowledge when it comes to house insurance. Many not know the process involved and most rely on insurance brokers for information.

Because of this, there is a huge chance that many people are paying more than they should for home insurance. According to confused.com, UK home owners are collectively overpaying almost £1.3billion for their house insurance policies every year.

In order to ensure that you’re not overpaying for your house insurance, here are the things that you need to do:

1.    Keep in mind that what you insure is the amount of rebuilding cost and not the actual market value of your property. There is a huge difference between the two amounts. If you’re unsure on how to get the actual cost, use free rebuilding calculators available online.

2.    Ask for quotes. You don’t just have to sign up with the financial institution that loaned you the money for your house. Instead, shop around and compare. Look for other house insurance companies and ask for quotes. Be ready with the information that they’re going to need; like the floor measurements and rebuilding cost before calling them.

3.    Compare. Get as many quotes as possible and compare not just the prices but also what’s included in the house insurance policy. You would want to make sure that you’re getting exactly what you need, and that you’re not paying for those things that you do not need.