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Householders 'spending £100 too much' on home insurance

31/07/06

Householders could be paying over £100 more than necessary each year because they are failing to switch home insurance providers, according to a new report.

A survey by insurance broker Barclays Insurance has claimed the most competitive home insurance premium available to homeowners in May was priced at £195.73.

However, some customers are paying an annual fee of £308.68, which marks a difference in premium valuations of £112.95 or £9.41 per month.

Consequently, millions of homeowners could potentially be paying over-the-odds for contents and building insurance protection, with an estimated 85 per cent of consumers choosing not to switch their home insurance policy when it comes up for renewal.

Mark Till, marketing director at Barclays Insurance, has urged homeowners to shop around to obtain the best value-for-money for their home insurance cover.

"It is amazing to see that people are unaware how easily they can switch their home insurance to a better deal," he said.

"And more importantly, that it is not just an option when it is time for their annual renewal quote.

"We actively encourage people to shop around to find the best deal to ensure they get the best-value home insurance."

The Association of British Insurers (ABI), which claims to represent 94 per cent of Britain's brokers, recently warned home insurance premiums could rise because an increasing number of homes were at risk from flood damage.

According to the ABI, approximately 570,000 residential houses are now situated in areas with a high-risk of flooding, compared to a total of 220,000 homes in 2002.

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