The Importance of Home Insurance: Why to Get It

by News Guy on April 30, 2012

It’s getting a lot harder to run a home as cheaply as you once could. As utility prices rise, food costs jump and petrol continues to climb in value, personal budgets are becoming constrained and many individuals are looking to cut down their expenditure on a number of things to combat this. In fact, some people are risking a lot more than they may realise in order to save money.

One look at the recently-released “Changing Costs of Utility Prices in the UK” Index by Castle Cover shows how utility prices are rising – somewhat dramatically for both gas and coal, while electricity is also experiencing a jump too – and it’s forcing people to cut back on things that they could once naturally afford to pay for with ease.

changing utility prices

One of these things is home insurance – coverage that protects you against the most unfortunate of situations – and people are deciding that risking it without this financial safeguard is the best way to go.

However, another Castle Cover Index – released soon after its utility prices equivalent – has highlighted that burglary and household theft have remained at largely the same level for the last ten years, despite better home security. It’s really quite surprising in many ways, though when you think about it, there’s every reason why people would still try to break into your house.

While years ago, TVs, computers and VHS players were all big, clunky behemoths, now they’re sleek and refined, making them easier than ever to steal. You’re talking laptops, tablets, flatscreen TVs and smartphones, which all hold a remarkable amount of value. In fact, there’s a chance that consumer electronics will account for most of your material wealth (at least, if you remove jewellery and clothes from the equation).

So, is home insurance worth it? Yes and no. Of course it’s worth having to keep you safe against all possibilities, yet it’s also not worth the money that certain places are charging for it. What’s more, you can also inadvertently end up paying more than you need to because you don’t understand the way house insurance works, or you overlook the possibility of better savings.

Here are a few top tips for getting the cheapest deal to maintain your investment in this protection:

  • Buy insurance annually, not monthly – This way, you could save yourself up to two months’ worth of insurance.
  • Combine it with another policy with the same provider – Are you with an insurer for something else, such as your car or even your own life? Perhaps you can combine these with this policy and reduce both in the process.
  • Don’t insure more than you need to – If you have £35,000 of things, don’t take out a contents policy that protects up to £500,000. It’s not worth it.
  • Use a price comparison site – There are plenty of big names in this arena, though consider some of the smaller websites, too. They often include deals that can’t be found elsewhere!
  • Remember who you are – If you’re over 50, disabled or even in the armed forces, certain companies may give you a better deal!

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