Audrey
Changing your home insurance provider can be a great way to find better cover or a more competitive price. While the process is usually straightforward, a few common slip-ups can lead to problems. Knowing what to look out for helps ensure you get the right protection for your home without any unwelcome surprises down the line.
Focusing Only on the Price Tag
It is tempting to choose the policy with the lowest premium, but this can be a false economy. The cheapest option might not provide the level of cover you need, leaving you exposed if you have to make a claim. A low price could be linked to a much higher excess or stricter limits on what you can claim for. It is important to look at the overall value of a policy, not just the initial cost.
Not Comparing Cover Details
When you get quotes, make sure you are comparing similar levels of cover. A policy might seem cheaper because it offers less protection. Check the details for both buildings and contents insurance. For example, one policy might include accidental damage as standard, while another offers it only as an optional extra. Look closely at exclusions, which are specific situations or items the policy will not cover. A thorough comparison ensures you are making a fully informed decision.
Underestimating the Value of Your Contents
One of the most frequent errors is not correctly calculating the value of your belongings. Many people guess the total value or forget to include everything they own. It is important to go through your home room by room and add up what it would cost to replace everything new. If you undervalue your contents, you will be underinsured. In the event of a claim, an insurer might only pay out a percentage of your loss, leaving you to cover the rest.
People often forget to include items such as:
- Clothes and shoes
- Kitchen appliances and crockery
- Items stored in an attic, garage or shed
- Children’s toys and electronics
- Carpets and curtains
A Scenario of Underinsurance
Imagine you estimate your home contents are worth €30,000, but their actual replacement value is €50,000. A fire in your kitchen causes €10,000 worth of damage. Because you have only insured for 60% of the true value of your contents, your insurer may apply an “average clause”. This means they will only pay 60% of your claim. Instead of receiving the full €10,000 to repair the damage, you would only get €6,000, leaving you with a €4,000 shortfall.
Forgetting to Check the Policy Excess
The excess is the amount you must pay towards any claim you make. For instance, if you have an excess of €500 and you make a claim for €2,000, the insurer will pay €1,500. Some policies with low premiums have a high excess. Always check what the compulsory and voluntary excess amounts are before you agree to a policy. Make sure it is an amount you would be comfortable paying if you needed to claim.
Failing to Disclose Important Information
You must give your insurer accurate and complete information. This includes details about previous claims, who lives in the home, and what the property is used for. If you have made significant home improvements, like building an extension or converting the attic, you must declare them. These changes can increase your property’s value and its rebuilding cost. Failing to mention these details could invalidate your policy, meaning a future claim could be rejected.
Switching your home insurance does not have to be complicated, but it pays to be thorough. Taking the time to compare policies properly and provide accurate information ensures your home has the right protection. For anyone thinking about changing home insurance providers, a careful review can lead to better cover and peace of mind.
Overlooking the Timing of Your Switch
Another common mistake is not paying attention to the timing of your policy change. Some homeowners cancel their existing insurance before the new policy officially begins, leaving a gap in cover. Even a short lapse of just a few hours could put you at financial risk if something unexpected happens.
It is also important to check whether your current insurer charges a cancellation fee. In some cases, cancelling mid-term can reduce the potential savings you expected from switching. To avoid complications, always make sure your new policy is confirmed and active before ending your old one, and review any terms related to cancellation on your existing contract.
Conclusion
Switching home insurance providers can be a smart move, especially if you are looking for better value or broader cover. By avoiding common pitfalls such as focusing solely on price, underestimating your contents, overlooking excess amounts, or failing to provide accurate information you can ensure your new policy genuinely meets your needs. Taking a little extra time to review details, compare like-for-like quotes, and plan your switch carefully will help you secure reliable protection and enjoy greater peace of mind in your home.
Additionally, reviewing your policy regularly and staying aware of changes in your home or lifestyle can further safeguard you from unexpected gaps in cover. As your circumstances evolve, so too should your insurance. With a thoughtful, informed approach, you can choose a policy that not only suits your budget but also provides long-term confidence and security.
