STOP continuously paying too much for house insurance!

Banned 9 replies
Found 28th Oct 2008
I know this doesn't apply to everyone but worth pointing out that one third of people taking out buildings insurance pay way too much in premiums as they get a premium calculated on the value of their property. It should be calculated on the rebuilding cost which can be anywhere up to 70% lower!

Does under or over insurance matter?

If you are, say, 25% over-insured then premiums will be 25% greater than is required and, in the event of a claim, insurers will pay only up to the true reinstatement cost and not the sum insured. The additional premium for the over-insurance may total a large sum over the period of your ownership.

If you are, say, 25% under-insured you are at risk of a substantial loss.

In the event of a full loss the insurer will pay out 25% less than the true reinstatement cost ie the payment will be limited to the sum insured.

In the event of a partial loss ie a fire which destroys only the kitchen or a flood which damages only the ground floor, insurers will 'pro rata' a payment ie will pay only 75% of the cost of reinstatement.

insuringit.co.uk/und…tml

To calculate the rebuilding cost then click here (you need to register but no spam involved) :-

9 Comments

Original Poster Banned

abi.bcis.co.uk/

don't forget quidco. I took out seperate buildings and contents insurance in february via quidco and ended up £8 in profit!

don't most online forms ask you these days to estimate the house value & seperately to estimate the rebuilding cost so it must be based on both?

Banned

i did both mine through quidco last year, and end up paying a few quid for both

Original Poster Banned

worto03;3309863

don't most online forms ask you these days to estimate the house value & … don't most online forms ask you these days to estimate the house value & seperately to estimate the rebuilding cost so it must be based on both?


I haven't come across any online forms that ask for both. They normally just ask for rebuilding cost.

I used gocompare two days ago and it asked for both.

Original Poster Banned

Jumpingphil;3310232

I used gocompare two days ago and it asked for both.


comparison agents may well do this but single insurer quotes normally just ask rebuilding. Anyway, I suspect a lot of people put the same in both boxes if presented.

natwest used to charge me £500 for home insurance then i went to moneysupermarket.com and got it for £170 with the AA!!!
also natwest were charging me £400 for car insurance then i went with YES car insurance and got it for £200.

my house is valued at £250,000, it was built 10 years ago and first sold for £97,000.

I have got it insured for £500,000

I don't understand how my family can be accomodated for 1-2 years of the rebuild, the site can be cleared and the legal stuff done and a new £30,000 kitchen could be installed for any less. lol

I look forward to the day of rebuilding my dream house

Original Poster Banned

blackpeppa;3312977

my house is valued at £250,000, it was built 10 years ago and first sold … my house is valued at £250,000, it was built 10 years ago and first sold for £97,000.I have got it insured for £500,000I don't understand how my family can be accomodated for 1-2 years of the rebuild, the site can be cleared and the legal stuff done and a new £30,000 kitchen could be installed for any less. lolI look forward to the day of rebuilding my dream house


You are paying at least twice as much in premiums then wit no added beenfits :w00t:

Use the calculator to work out rebuilding costs and use this for renewal.

Extra costs such as site clearance, extra accommodation etc are still factored into the premium on top of the rebuilding cost
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