Brits Apathetic When Renewing Home Insurance

Although having a ‘can’t be bothered’ might mean that homeowners have one less issue to think about when it comes to renewing their insurance policy, doing so could leave them under more financial pressures.

In research carried out by Tescocompare it was revealed that just less than two-thirds (sixty four per cent) of Britons reached the decision to stay with their current building and contents insurance provider when they last had to renew their premium. Such a high number comes despite almost 44 per cent of Consumers facing an increase in the cost of their home insurance policy. On top of that, it was shown around four million of such consumers have witnessed their premiums increase at a faster rate than that of inflation. However, the price comparison website indicated that with the average home insurance policy costing 283 pounds, had those approaching the renewal of their premium decided to switch for a cheaper policy then they would have collectively saved some 26 million pounds.

The Tescocompare research also indicated that only a little more than a fifth (22 per cent) of consumers questioned who were facing a rise in premium above the rate of inflation thought about switching supplier. Out of these consumers, only eight per cent found that they were unable to get get the same level of cover for less money.

On top of paying out higher amounts of cash than is necessary for a home insurance policy, it could be possible that consumers find that they are developing difficulties in managing additional constraints on their expenditure. Such areas may well include credit and store cards, loans, mortgage repayments and household bills.

In addition, it is quite possible that a large quantity of people are willing to place themselves under additional financial pressures. Of those that decided to remain with their provider, 48 per cent feel that they had plenty of time to find an alternative supplier ahead of being hit with a price add extra to although they finally ended up staying with the same provider.

Paul Baxter, spokesman for Tescocompare, remarked “The message behind this research is clear – many millions sleepwalk through their insurance renewal allowing their insurer to increase premiums unchallenged. Regardless of how loyal you are to your current home and contents insurer – you should shop around at each renewal to make sure you get the cheapest and most appropriate insurance for you.”

For those who are seeking to carry out repairs to their property or purchase major household items – freezers, dining table and chairs for example – making use of cheap loan might be a recommended path to take. The additional financial help that a cheap loan brings may also help borrowers to take out a comprehensive home insurance policy which is also competitively priced to ensure that such objects are insured.

A loan could also be of assistance for consumers wishing to insure their pets. In a new piece of research Sainsbury’s Finance indicated that 11 million Consumers do not have cover for their cat or dog, with around 4.6 million of such people believing such a premium is not important. Meantime, should people not have insurance for their animal they may have to dip into their savings should their four-legged friend fall ill, with the average bill for vet treatment shown to cost about 300 pounds.

Mark Dawson writes for the the Loan Arrangers where you can compare loans and apply online for cheap payday loans, and the best rate secured loans.

- Mark Dawson