Whether you rent or own your home, every household should consider having insurance to protect against loss and damage. There are two types of home insurance which can be bought together, or separately. Buildings insurance, which is a requirement of certain mortgages, covers the permanent structure of a property and is held by an estimated 16.5 million households in the UK. Contents insurance protects anything that’s not a permanent fixture in your property and, although it is entirely optional, around 19 million UK households have it – including many renters.
In recent years many people have been victims of price-walking by insurance providers, which saw millions pay over the odds when their policies auto-renewed each year. The General Insurance Pricing Practices (GIPP), introduced by the Financial Conduct Authority (FCA) in 2022, effectively banned price-walking. However, there are still ways to make sure you’re getting the best value for money on the insurance you require.
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The UK’s Home Insurance market is highly competitive, with around 200 providers including some major international players which also offer insurance in other categories, including car insurance. Insurers are jointly regulated by the Bank of England Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA).
<aside> 🛠️ For the most up-to-date practical advice, read our guide to Saving money on home insurance
<aside> <img src="https://s3-us-west-2.amazonaws.com/secure.notion-static.com/9ae4fcda-a6c4-4f18-83fd-b67c9dc3e0b5/arch-yellow.png" alt="https://s3-us-west-2.amazonaws.com/secure.notion-static.com/9ae4fcda-a6c4-4f18-83fd-b67c9dc3e0b5/arch-yellow.png" width="40px" /> By our estimates, a typical household could save £167 by switching home insurance provider.
Thanks to the General Insurance Pricing Practices (GIPP), introduced by the Financial Conduct Authority (FCA) in January 2022, insurance providers can no longer increase premiums for existing customers at the end of an introductory contract. Instead, insurers now have to offer existing customers fairer deals, in line with what new customers are offered as their introductory rate. They also have to make it more accessible for customers to cancel an auto-renewing contract.
This has provided much needed protection for households, and you’re now unlikely to be ripped-off by price-walking to the extent that was so prevalent in recent years.
However, just because your insurer has to offer you a fairer renewal price than in recent years, that doesn’t mean there aren’t better deals available. It’s still worth keeping track of your renewal date and evaluating what insurance you need. When it comes to shopping around for a better deal, there are a few top tips to bear in mind:
<aside> 💡 If you’re using comparison sites, start researching what deals are available 3-4 weeks before your policy ends. Remember that the cheapest rates are normally found 21 days before the start date of a new policy.