Martin Lewis’ MSE issues urgent warning to every homeowner and renter before huge bill rise – do you need to act?
MARTIN Lewis’ MoneySavingExpert has issued an urgent warning to every homeowner.
In this week’s MSE newsletter the consumer champion urged households to check if they can save £100s on their home insurance.
Consultancy firm Ernst & Young is predicting that the bill will increase by 30% this year due to higher claim costs for expenses like building materials and labour.
It means that Martin is now warning Brits to take advantage of today’s lower premium.
He said: “EVERYONE should check now if they can save – as if you can lock in today’s premium, you can forestall rises for a year.”
The current average cost of home insurance covering the building and its contents is £190 a year (or £16 a month) according to gocompare.com.
But how much you pay does depend on a variety of factors including the value of your belongings, property age and its location.
While home insurance isn’t a legal requirement, it’s generally a good idea to have it.
It covers things like fire damage, weather damage, theft and falling trees.
There are generally three different types of cover which will determine how much you pay and what is covered.
You can get your building and its contents covered, your building only or contents only.
The first step according to MSE if your policy is up for renewal is to establish what cover you need.
If you’re renting you typically won’t have home insurance and the building will be insured under the landlord’s policy.
Instead you’ll have what’s called renters insurance.
Tenancy Liability covers accidental damage to your landlord’s contents and items they provide for you to use, whereas Tenants Contents Insurance covers your personal possessions in case of fire, theft, accidental damage or other insured risk.
It’s important to compare the best prices using a few different comparison sites – for example Compare the Market, MoneySupermarket and Confused.com.
You can get hundreds of quotes within minutes and the sites will break down the insurers and brokers for you.
It can also be a good idea to go to firms directly, for example DirectLine doesn’t appear on comparison sites and can be competitive for some.
MSE also says using a cashback site like Topcashback will give you up to £37 back if you compare through them.
If you’re keen to stick with your current firm them why not haggle using the other prices you find.
Lastly, make sure the policy you settle on is right for you and read the terms and conditions closely.
It’s vital also to check your firm is regulated by the FCA (Financial Conduct Authority) and if your claim is unfairly rejected then escalate any complaints to the Financial Ombudsman.
Meanwhile, here are seven everyday mistakes that could invalidate your home insurance and cost you thousands.
Plus, an insurance expert has shared the four hacks that could cost you cash.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk