UK Homeowners Miss Out On Better Insurance Rates
A recent survey has shown that a surprising amount of homeowners arrange their insurance through their mortgage provider rather than shopping elsewhere for a better, lower rate.
Mortgage companies expect their client's to have suitable insurance in place for the buildings they arrange the mortgage for. They expect cover in place for standard risks like fire, flood, storm damage and subsidence. Most lenders will have ties to insurance firms and provide quotes for their client around the time of the mortgage application and at renewal, but often better rates can be secured by shopping around for rates through a broker. The survey revealed that there is a common misconception with some homeowners that they must hold insurance arranged by their mortgage provider, when in truth they can arrange cover independently elsewhere.
The survey carried out by Gocompare.com stated that almost one in 11 homeowners was unaware that they could arrange cover somewhere else. Also revealed was that nearly a third of people surveyed did not make sure that the policy offered via their mortgage provider had the adequate levels of cover required. The results of the survey also showed that 30% of the homeowner that participated believed that they had to go with the buildings insurance provided by their mortgage company. When you consider that the average length of a mortgage is 25 years, that's a significant amount of time to be missing out on the best deals possible for buildings insurance.
As an insurance broker with over 25 years in property insurance we would always recommend that a homeowner looks around the market for quotes at the renewal of their existing policies. We find those clients who have previously held insurance arranged via their mortgage provider are surprised by the savings that can be made through obtaining a bespoke quote from our office.
Contact B&M Insurance today for a quote or any queries you may have in regards to home insurance.
Author: Ryan Hinegan