Bargain Churchill home & contents insurance

Thriftynifty_2

I've just taken up home & contents insurance from Churchill (online) having reviewed the many offers on the 'Cheap Home Insurance' page on Martin's site - "50% off home insurance cover until 31 Aug 2010".

Looks like I've bagged a bargain.

Outline details only, as I need to keep some privacy!...

3 bed, pre-1837 mid-terrace in rural area (i.e. village), no claims 5 years+, rebuild cost £500,000 (standard, probably twice what the actual rebuilding cost would be - note: not the market value of the property), contents £63,000 (adjusted above £50,000 standard, I very much doubt that we've got £63,000 of non-fixture items in the house but this figure has come about from annual adjustments by another insurer, I don't currently have the time to reassess each room, and it would be foolish to under-insure by default).

Previous 12 months taken with Co-operative Insurance Services (CIS) (online) £305. This year's quote from CIS, £420! No change in circumstances, no claims in last 12 months. Okay, so the first year discounts have gone, but even so are they having a laugh?

Churchill quoted £150 for the same H&C cover. As the current vernacular goes, "it was a no-brainer".

dacouch

Well done, I'm impressed that you have insured your contents for a realistic amount, many people grossly underestimate the value of their contents which costs them dearly when they make a claim.

You don't appear to have taken Accidental Damage on the buildings, I would expect the additional cost on that size premium to be circa £8, the extra cover it provides for the small extra premium can be invaluable.

I assume on that size premium you have kept the excess to something reasonable eg £100 or under, if you have a bigger excess on that size premium in my opinion it's not a good thing as the discount you get on a low premium means you have to go for many many years without a claim to make the discount worth while.

One final thing is to remember that Churchill will have discounted the premium massively to gain your business so when it comes up for renewal they will normally remove the discount. Be prepared for this, there are MSE posters who report they have got RBS Insurers to reduce the renewal premium by getting new customer quotes from the same RBS company or other Insurers.

luci

Be aware that Churchill don't cover Trace and Access.

Thriftynifty_2

Hi Dacouch,

Thanks for your comments.

I've never knowingly opted for accidental damage in 25 years of handling my own insurance. I've not not covered the family in bubblewrap and styrofoam either, and as a result we have experienced a couple of minor accidents over the years. But we have never tried to make a claim for accidental damage as the difference between the excess and the total value of the claim (and then the potential loss of no claims and other invisible factors that insurers seem to then include) makes it neither financially beneficial nor merits the time and effort.

I accept that this is not necessarily either a wise course of action or one that fits other people's lifestyles. Also, I may have just tempted fate!

The last claim we made was for a greenhouse that buckled in a winter storm some 15 years ago.

I don't understand your third paragraph at all - but I'm probably being very thick. Are you suggesting that a relatively high excess, say £250, on a low premium, say less than £200, doesn't make it worthwhile? I can see that it wouldn't be worthwhile if you were (unlucky enough to be) a habitual small claimant.

Thanks for the last tip about the RBS family. Yes, I won't be spending the saved premium and fully expect to be paying more elsewhere next year - but hopefully not twice as much!

roddydogs

You will have to go online every year as someone pointed out Churchill will increase the premium........and operate an "Automatic" renewal unless you tell them. Just cancel, and go online again.....to Churchill.!

dacouch

My view on low premiums and big excesses is basically the discount you get for opting to increase your excess (Voluntary) above the standard built in excess (Compulsory or Policy Excess) is fairly low. For instance you will probably be receiving a discount of circa 5% for opting for an additional £100 excess (On top of any built in excess). So the discount on the size of premium you have is circa £7.50. But for getting this discount you may have agreed to pay an extra £100 towards claims (Excess). If divide the premium by the discount you will find you will have to go without making a claim for 13 years to make the discount worthwhile which is a long time.

The above is based on approximate discounts, you can find out how much discount you are receiving by running your quote through without any voluntary excess, this then allows you to work out whether it is worth having the discount or not.

In my view voluntary excesses are really only worthwhile for people with premiums in excess of £400.

Accidental Damage Cover on buildings does not just cover Accidental Damage, it can pay claims that would not normally be covered by standard cover. A good example is if you have a flat roof that leaks (Not due to an actual storm). Most (Not all) Insurers would pay the damage the water has done to the house but not to repair the flat roof itself.

Thriftynifty_2

Thanks Dacouch, you've got me reconsidering.

roddydogs

Where does its they've had to have a large "Excess" in order to get a low premium? My bargain Churchill online policy has the normal £50 excess. And i pay less than £100 for Content/Buildings combined policy.