Consumers 'should not always pick home insurance based on price'
25th April 2008
Consumers should be careful about simply picking the cheapest home insurance policy, an industry expert has warned.
Kelly Ostler-Coyle, spokesperson for the Association of British Insurers (ABI), explained that cheaper home insurance policies often did not include important extras, such as legal cover.
Instead of simply comparing home insurance policies based on price, Ms Ostler-Coyle said that it was important to look at what exactly was covered and the small print of the deal.
"When you are taking out taking out your home insurance you don’t just want to go for the cheapest. You want to say, ' Does it include legal cover? Does it have all risk extension fees so you’re covered for your items when you’re outside the home and how much [in terms of] belongings am I covered for?'," she explained.
"You want to be looking properly at your policy to see what cover you have for everything and not just going on price, so if anything happens you are completely covered."
Recently, Halifax suggested that it was especially important homeowners opted for insurance during the spring. It explained that homes were particularly prone to subsidence over the coming months.
The lender said there were measures homeowners could employ to reduce subsidence risks, but added that insurance was useful in case the worst happened.
© Adfero Ltd