Home insurance renewal

When it comes to updating your home insurance policy, how many times have you let your home insurance auto-renew without even thinking about it? It might seem like the easier option but, by asking yourself some of these questions, you could save money in the long run.

When it comes to updating your home insurance policy, how many times have you let your home insurance auto-renew without even thinking about it? It might seem like the easier option but, by asking yourself some of these questions, you could save money in the long run.

Helen Phipps
Insurance expert
4
minute read
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Last Updated 25 NOVEMBER 2022

Does my home insurance still provide me with the right amount of cover?

Just because a home insurance policy was right for you 12 months ago, doesn’t mean it’s still fit for purpose when it’s time to renew. Life moves on, and if the value of your home and its contents increases or decreases, you could find yourself either underinsured or paying over the odds.

How much will my home insurance renewal cost me?

According to the Association of British Insurers (ABI), the average home insurance renewal (buildings and contents insurance) between April and June 2022 cost £299. However, when comparing through Comparethemarket, the average cost of home insurance is just £145[1].

[1] 51% of our customers were quoted less than £144.02 for their buildings and contents home insurance in September, 2022.
 
 
 
 
 

Is automatically renewing home insurance easier than switching providers?

Yes, it’s easier. But it’s likely to be much more expensive too. Until recently, it was tricky to compare last year’s premium with the auto-renewal price. But according to new rules from the Financial Conduct Authority (FCA), insurance providers must now include the cost of last year’s premium on your renewal letter.

So it’s easy to check how much your price has changed. Even if it has decreased it’s still worth shopping around because if your provider has decreased your price, others likely will have too.

What should I consider when I renew my home insurance?

Some of the key things to think about ahead of renewal are whether any of your household contents could have depreciated or increased in value – or if you’ve bought any new items over the past 12 months.Valuable family heirlooms, like jewellery or antiques, might increase in value over the course of a year. And a high-value item may need to be individually specified on an insurance policy if it exceeds the ‘single article limit’.

The single article limit is the maximum value that any one item can be worth before it needs to be added individually to the policy. What that limit is will depend on the policy, and it can vary from £1,000 all the way up to £15,000. So, for example, if the single article limit on your policy was £1,500 and your engagement ring was worth twice that, you’d need to tell your insurance provider (and probably pay a bit more to get it insured). If you’re not sure what your single article limit is, check your policy documents.

Also, think about things like new sofas, beds or even a wedding dress. You’ll want to protect all of these, so make sure your policy reflects the item’s value.

But it’s not just the stuff inside your home. Have there been any external home improvements, like a conversion or an extension? Physical changes to your home will also need to be taken into account in your buildings insurance policy. On a more personal note, if you’ve had a child or even got a dog or a cat in the past year, you should let your insurance provider know so they can update your policy accordingly.

How can I make sure I get my home insurance renewal right?

The main thing to consider is whether the policy that’s up for automatic renewal accurately reflects your home as it is right now. Be honest with yourself about whether anything’s increased in value and is therefore likely to push up insurance premiums. If it comes to making a claim, you’ll be grateful that you’ve got the right cover in place. Similarly, don’t pay more than you have to by forgetting to take depreciation into account.

Your home insurance isn’t about finding the cheapest deal – it’s about finding the right deal for your circumstances and the level of protection you want. And if you’re stuck and really don’t know what you should be looking for, take a look at our home insurance hub.

When is the best time to renew home insurance?

You should consider your home insurance options in the final few weeks of your policy. This lets you weigh up your options for either auto-renewing with the same home insurance provider, or switching to a new policy that could be cheaper.

If you’re letting it auto-renew, there’s nothing you need to do, but you’ll potentially miss out on significant savings. If you’re looking to save money on your home insurance, you should be comparing home insurance quotes within a month of your renewal date.

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