Five most common home insurance errors

Most people see home insurance as a necessity rather than a luxury – something practical but unexciting. Perhaps that’s why so many of us gloss over the process, often losing money or making mistakes that could invalidate our cover in the process. Follow these five simple steps to make sure that you’re getting the most for your premium payments.

Shop around: It may sound obvious, but one of the easiest ways to lose money with your home insurance is through going with the first quote you receive. Instead of automatically renewing with your current provider, consider having a look at the market to see what’s out there. Price comparison websites can give you an idea of how much you should be paying, but it’s well worth getting quotes from reputable companies such as Kwik Fit, who will be able to tell you exactly what you would be getting for your house insurance premium payments.

Check the fine print: Another obvious point – but one that many homeowners overlook. Make sure you read the fine print of your contract, paying special attention to deductibles and pay rate claims, before committing to a home insurance provider. It is also important to register exclusions, as many companies will not pay out for items such as home office equipment, credit cards and valuables over a certain amount.

Don’t go overboard: Fail to pay attention while taking out home insurance, and you may end up getting stung for ‘optional’ extras that you don’t need. Make sure you know exactly what you’re paying for, and bear in mind that it’s usually cheaper to buy add-ons such as life insurance and travel insurance separately.

Don’t under insure: Failing to properly insure your belongings can be even more damaging to your pocket than over-insuring. Before taking out home insurance, it’s important to draw up an inventory of your belongings, making sure that everything you own and its value is listed accurately and truthfully.

Update regularly: Remember that the value of your home and belongings is constantly changing and needs to be updated annually. Additional security measures, such as dead bolts or burglar alarms, should also be registered with your insurer – they could help to save you money.