Finding Cheaper Home Insurance

There are many price comparison websites on the internet to help you find cheaper home insurance. To make the best use of them, however, it is important to appreciate just why buildings and contents insurance is so important - especially since one in ten of adults have no contents insurance and 5% of homeowners do not have buildings cover.*

Buildings insurance

If your home is destroyed by fire, floods, storm or other damage, it would need to be rebuilt. To insure against such a risk, therefore, you will need to choose a level of cover sufficient to pay for the rebuilding. Clearly, this will be different to the market value of the property, but will provide the yardstick you use to find cheaper home insurance.

Contents insurance

To negotiate your way through the maze of many different options to find cheaper home contents insurance, you will need to decide whether the contents are insured on a replacement, new for old basis or a wear and tear basis. The latter is naturally cheaper, since it will pay out less. In either case, however, it is the "total sum insured" (the maximum that will be paid out under the policy) that should set the basis for any price comparison of the premiums you need to pay.

Combined buildings and contents insurance

Provided you can be satisfied by the quality of cover offered for both parts of the package, cheaper home insurance can usually be found by combining both buildings and contents insurance under the same policy.

* Source: Sainsbury's Finance