Building Insurance Cost?

paulmapp8306

OK, im a first time buyer, and am buying a 4 bed semi - 1960s ex council, for £112k. Rebuild cost according to the survey is £115k

i have a quote from my advisor, who says its a good quote, of £34/month. Thats JUST buildings as i have contents that i cant cancel - so will add the contents in Feb when my current policy expires.

thing is - from comparison sites that seems quite high. i know not all policies are equal and i looked at one from "onecalldirect" which includes accidental damage etc, and comes in at £19/month. There may be extra costs though as the key facts bit sites a lot of stuff on top of the policy that one call CAN add (doesnt say if they will or not).

I guess I need to know what kind of premiums i should be expecting for decent coverage of my new home. i dont want to get a policy that wont provide proper cover, but I dont want to over pay either.

BlueC

£34 a month seems high to me but lots of things could be affecting that other than just cost to rebuild.

Shop around or try a broker as you can often haggle with brokers. As for coverage, I found all the big insurer's policies are much of a muchness in terms of the main cover but they do all have different specifics - a good broker will explain the differences. I'd always go with one of the big name insurers for peace of mind. e.g. Allianz, Aviva, etc.

paulmapp8306

The £34/month is from a broker - my mortgage broker actually. Has told me its the best her "search program" came up with for my needs. She is whole of market.

The £34 policy doesnt have anything added - no accidental damage, no legal cover. The one i found via CTM has both and is £18/month.

BlueC

Not sure I would ever buy insurance from a mortgage broker... they're just trying to make a quid off you. I think you're doing the right thing to find yourself a better deal.

Who underwrites the onecalldirect policy? They deal with a lot of insurers. Sounds like a good price.

s_b

you really need to get the cover you require from a comparison site,we are saving £400 a year since we changed from using our mortgage providers cover
be aware your provider will require details of insurer and will make a charge possibly for you providing the information ,i think our mortgage company norwich and peterborough as was whom we changed to charged us a £25 yearly fee for not getting insurance off them
your broker is just robbing you

jackyann

I moved from a similar house just over a year ago. At that point I was paying about £220 a year for buildings cover, but I had contents cover in the same deal, and I paid annually.
I agree, go to a broker, especially look to see if your union has a link, or any society you belong to. I go through NHS Discounts. They offer a good deal to NHS staff (? seen as being responsible & sensible!) but it's not as big as the gap you're talking about.
It does vary with area - I lived in an area that was above average for insurance costs, but not one of the worst.

ic

Just like car insurance it will come down over time. When I started my first years policy was £350 for buildings and contents. I now pay £150, which has come about via cashback and me pushing up the excess - I now know how to do so many things around the house, so I'd only claim for something difficult or expensive. For example I recently had an attempted break in to my shed - the roof was damaged and I replaced it, no point claiming on insurance for that. £34 a month sounds very expensive - I suspect your advisor will make some good commission on that.