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    • fritzpoll
    • By fritzpoll 7th Dec 17, 2:00 PM
    • 2Posts
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    fritzpoll
    Home Insurance when planning to move
    • #1
    • 7th Dec 17, 2:00 PM
    Home Insurance when planning to move 7th Dec 17 at 2:00 PM
    Hi there - hope someone can offer some advice.

    Need to renew buildings and contents on my home. Normally I buy annual policies with a one-off payment to save the interest on the monthly payments

    But we're thinking of moving house around June, and so I would need to cancel the policy on the current home. Is it going to be more cost-effective to buy a monthly than an annual for this one?
Page 1
    • Quentin
    • By Quentin 7th Dec 17, 2:26 PM
    • 33,509 Posts
    • 17,390 Thanks
    Quentin
    • #2
    • 7th Dec 17, 2:26 PM
    • #2
    • 7th Dec 17, 2:26 PM
    If you are moving to another property you want to insure then you should be able to simply transfer your policy to the new address.

    Otherwise find out the cost of short term cover v cancellation costs on a 12 month policy and do the sums
    • Aretnap
    • By Aretnap 7th Dec 17, 2:52 PM
    • 2,843 Posts
    • 2,339 Thanks
    Aretnap
    • #3
    • 7th Dec 17, 2:52 PM
    • #3
    • 7th Dec 17, 2:52 PM
    Normally I buy annual policies with a one-off payment to save the interest on the monthly payments

    But we're thinking of moving house around June, and so I would need to cancel the policy on the current home. Is it going to be more cost-effective to buy a monthly than an annual for this one?
    Originally posted by fritzpoll
    If you mean a genuine monthly policy then possibly. However genuine monthly policies are few and far between, and not easy to find.

    What you're probably asking is is it better to buy an annual policy and pay monthly, and the answer is no. In the vast majority of cases, paying monthly just means that you take out a loan which allows you to pay your year's premium up front, then you pay back the loan over 12 months. If you cancel the policy then the loan will still need paying off - and while the refund from the policy will pay off some of the loan, once cancellation charges are deducted from your refund you may well still be left having to get your credit card out when you cancel.

    Assuming you can afford to pay the annual premium up front then there are essentially* no advantages to paying monthly - it doesn't mean that you can cancel on more favourable terms than if you're paying annually.

    *The only advantage would be if the overall cost is the same, in which case you get the advantage of an interest free loan and can benefit from whatever interest you get by keeping your premium in the bank a bit longer. However more often the interest rate on monthly payments is quite high, so paying monthly is more expensive.
    • Carrot007
    • By Carrot007 7th Dec 17, 3:00 PM
    • 743 Posts
    • 603 Thanks
    Carrot007
    • #4
    • 7th Dec 17, 3:00 PM
    • #4
    • 7th Dec 17, 3:00 PM
    You would be best finding an annual policy where the cost to change the insured property is nothing/minimal.

    This will not be the cheapest but the cheapest usually give bad cover anyway.

    It will be cheaper than finding short term cover which is probably not going to be monthly but per day.

    And interest means you are on an annual cover and T&C's apply and you might have to pay in full if you cancel. It is different from short term cover.
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