Can I change my home insurance?

kindofagilr

We moved into our house in April and took out home insurance (£34.50 a month for building and contents)

I was in talking to a manager at Lloyds on Sat and he said that I dont have to wait till April to change I can change now?

Is this correct?

mattymoo

Well the manager at Lloyd's is trying to earn commision on their insurance so be aware they have a vested interest.

The advice is roughly correct but the following provisos apply:-

- If you've had a claim since April the full premium will be payable.
- The existing insurance, if paid monthly, will be subject to a loan agreement. You can cancel this but there will be fees payable and there may still be premium owing.
- Typically after 6 months the insurer will need to have been paid 9 months premium. The costs of setting up a policy are front end loaded and they expect to be paid over 12 months for a 12 month policy. If you cancel before that time you will be charged at their short term rates which are more expensive.
- If you've paid upfront in a lump sum the refund will be along the same lines, e.g. 25% return of premium for only 6 months of cover.

The percentages and fees vary from insurer to insurer so you need to check these first. The new policy saving needs to offset these costs at least to make it worthwhile moving.

kindofagilr

Ok thank you.

Yes I had no intention of going to lloyds

The insurance is currently with towergate, and I checked on moneysupermarket and got a quote for ehome (I think that was the name) and it was going to be £66 for 1st month then £11.00 for the next 11 and could get £30 back from Quidco

SO I need to check towergate's t+c's and see how much its going to cost us to leave?

Quentin

You do, (but the ts + cs won't give you a figure for your own policy - ring and ask them - if the figure they give you to cancel sounds acceptable to you, then dot the "i"s and get a full name and department to refer back to should they change their mind!)

dogbot

make sure the level of cover, particulalry the sums insured and internal policy limits of the policy you are looking at meets your needs.

property.advert

Not all pay monthly insurance products are on a loan agreement - check.

Whether interest free or not (never is free in reality but just not discounted if you pay in one go), I'd try and pay it in one go if I were you.

I also strongly advise having your buildings and contents insurance with the same provider. Why ? because they cannot then argue that it is one or the other as they are at risk on both. I went through those arguments a decade ago and it is unnecessary (mine was a flat though).

vij

some companies will help with the costs of you moving to them for example SAga offer up to £25 to move mid term to them but do ask you for proof of your cost of canx