Home insurance is one of those bills that many people just let roll over each year. The renewal notice arrives, it looks roughly similar to last year, and the direct debit continues. The problem is that auto-renewal pricing is consistently higher than what a new customer would pay, and what a comparison site will find you.
Since 2022, FCA rules have required insurers to offer existing customers the same pricing they would offer new customers buying the same policy. In practice, the gap has narrowed — but the cheapest overall price for your cover is still very often found by shopping around rather than accepting your renewal quote.
Start early
Comparison sites and insurers price home insurance dynamically, and policies bought well in advance of a start date can be meaningfully cheaper than those bought close to the renewal date. Starting your comparison three to four weeks before renewal rather than on the day gives you more pricing options. It also gives you time to check policy details rather than rushing.
Buildings and contents are separate decisions
Many households buy combined buildings and contents insurance from the same provider for convenience. That is often fine, but it is worth comparing them separately as well as together. Sometimes the best combined policy comes from a single provider; sometimes it is cheaper to hold them with different providers. The same comparison sites that price combined policies will usually let you price them separately too.
Check what you are actually insuring
Home insurance premiums are partly based on the rebuild cost of your property for buildings insurance, and the declared value of your contents for contents insurance. If either figure is significantly out of date — you renovated the property, bought new furniture, or acquired items of value — your policy may be underinsured. Equally, if your declared contents value is higher than your actual possessions are worth, you may be paying more premium than you need to.
Use comparison sites and then negotiate
Running a comparison search across two or three sites tends to give a reasonable picture of the market, as different sites have relationships with different insurers. Once you have a competitive quote, call your existing insurer and give them the chance to match it. Insurers have retention teams with pricing flexibility. Many will match or beat a like-for-like competitor quote rather than lose you as a customer.
Higher voluntary excess reduces your premium
Increasing your voluntary excess — the amount you agree to contribute towards any claim before the insurer pays out — lowers your premium. This can be a reasonable trade if you have enough savings to cover the excess comfortably and you do not plan to make small claims. Setting a voluntary excess at a level you could not easily cover defeats the purpose of having insurance.
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Ask Fin provides general guidance only, not regulated insurance advice. Always read policy documents carefully and check cover details before purchasing or switching home insurance.