Cheap home insurance 'not always the best'

By Marianne Straker, Wed 7 Jul 2010 - Published in Home Insurance

People should not always choose the cheapest home insurance when shopping around for new cover, an expert has stated.

Recent research from moneysupermarket.com claimed that the UK is wasting up to Ł937 million a year through households automatically renewing their home insurance without looking for a new deal.

However, British Insurance Brokers Association technical and corporate affairs executive Graeme Trudgill said that taking out cover does not always come down to price alone, as people have to buy the policy which best protects them.

"Shopping around is a sensible thing to try and make sure that you have a fair deal … but there is absolutely no requirement to change insurer every year," he commented.

The moneysupermarket.com research also suggested that 29 per cent of homes renew their insurance each year without looking for a different product.

Mr Trudgill added that there could be several reasons for this other than complacency, such as people being struck by a flood in the past or already holding the best cover for their needs.

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