By Joseph Kenny
Each year when our renewal notices come through the post for
our home contents insurance and/or home buildings insurance,
most of us automatically sign the form and send it back to the
insurance company – after all, we already know how much the
premiums are going to be. Big financial mistake, and here are
Did You Buy Anything New In The Last Year?
If you bought anything new in the last year, say a new
television or video recorder, then the value of this new
purchase will not be included in the renewal notice you just
sent off to the insurance company. Likewise, if you sold
anything of value over the last year, and have not informed
insurance company, then you are paying home contents insurance
for something you no longer own. Either way, your not paying
the right amount of insurance premiums.
Did The Costs Stay Static?
If you have home contents insurance then you are insuring your
personal property for the replacement cost of buying the same
thing new. On the other hand, part of your home buildings
insurance should cover the cost of labour and materials. Now
ask yourself, would the cost of replacing the picture hanging
in your living room be the same today as it was last year? If
the answer is that it would cost you more, tough luck, you’ll
only get paid out what you said the cost of replacing it would
be! The same can be said of your friendly builder, would he
charge you the same for an hour of his time and for his
materials today as he would have done last year? If the answer
here is no, then you should be expecting to pay him the
Did The Value Of Your Home Stay The Same?
Similar to the above, with your home buildings insurance you
need to be asking yourself whether or not the value of your
home stayed the same this year as it was last year? You need
be asking yourself this question even if you didn’t do any
to the house – such as building an extension – that would
naturally automatically add value to your home.
Is Your House Any Safer Today?
Here the question is, have you done anything to your house
the last year that would mean your home would be considered
safer today than last year? For example, did you add any
deadlocks to your doors or windows? If so, then there’s a very
good chance your home contents insurance premium would be
reduced, as the security in your house is a major
in assessing your premium (along with the crime rate in your
neighbourhood, so you may also want to check and see if this
has gone up or down also).
Keep in mind that time stands still for no man. As such, you
need to read your home contents insurance and/or home
insurance renewal notices very carefully to make sure that
reflect, as accurately as possible, your life today and not
your life of yester-year.
About The Author: Joe Kenny writes for the UK personal finance
sites www.ukpersonalloanstore.co.uk and also