Warning to anyone buying a home over quick check which could save you £250 a year
A QUICK check could save home buyers hundreds of pounds a year as drizzly weather hits parts of the UK.
New research from Compare the Market has revealed how much more you fork out on home insurance if your property has flooded.
The price comparison site said the average premium in January was £451 if your home had been battered with a deluge of rain, compared to £204 if it had not – a £247 difference.
But as wet weather lashes the UK today, and after months of storms, one quick check for home buyers could help them avoid ending up in a home that’s been flooded, and forking out more on a premium.
The Association of British Insurers says estate agents have a duty to tell you if a home you are looking at has previously flooded.
You can check if a certain postcode is in a high flood risk area by using the Government’s flood map tool too.
If you already live in a high flood risk area, it might be worth reviewing your home insurance policy to ensure you’re covered in the event of a flood.
Helen Phipps, director at Compare the Market, said: “With storms and flooding becoming more frequent, it’s a good idea to review your home insurance policy and to check if you are living in a flood-risk area.
“The home insurance market has seen a decline in the number of people taking out a policy over the last three years, meaning many households could be left uninsured, and out of pocket, if stormy weather or floods cause damage to their homes.”
It comes as Compare the Market found the cost of insuring a home which has flooded had risen from £352 in January 2023 to £451 in January this year – a £99 increase.
The price comparison site also found the cost of insuring properties near bodies of water is on the rise.
In January, the average premium for a home near a body of water was £214, an increase of £48 from £166 in January 2023.
Meanwhile, it said home insurance overall had risen £48 year-on-year from £156 in January 2023 to £204 this January.
What is home insurance?
Home insurance is designed to cover you in the event of fire, flood, or theft or loss of any item inside it.
There are two types of home insurance policy – contents and buildings.
Buildings insurance covers the cost of repairing any damage to the structure of your property which might have been caused by a fire or flooding.
The “building” includes elements like your roof, walls and floors as well as permanent fixtures such as windows or fitted kitchens.
Contents insurance says what it does on the tin – it covers you in case the contents of your home are damaged, lost or stolen.
You can buy either buildings or contents policies separately, or combined so you are covered across all scenarios.
Not all home insurance policies cover the same things though, so it’s worth shopping around.
You can use price comparison websites like Compare the Market, GoCompare and Uswitch.
Most home insurance policies also come with an “excess” – the amount you have to pay towards a claim.
Increasing your excess will see your policy go down, but means you’ll have to fork out more if you have to make a claim.
How else to save money on home insurance
Ceri McMillan, insurance expert at Go Compare previously told The Sun renewing your policy 27 days ahead of it expiring could save you £60.
And at the very least, don’t wait for your policy to auto-renew as you’ll likely pay more than if you shop around for a cheaper deal.
If you’ve got the money up front, it’s worth paying for your premium in one lump sum as well.
Ceri previously told The Sun you can save around 10% on your premium using the trick.
The ABI said the average home insurance premium was £341 in 2023, which means you could save around £34.
Combining contents and buildings policies rather than paying for them separately could save you £100 a year as well, according to Confused.com.
Installing a burglar alarm can help drive down your premium price as well, albeit after the initial up front cost.
Consumer group Which? says you can get an alarm for around £100, and install it yourself to save extra cash.
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