5 Important Points You Should Know about Home Insurance Renewal
Home insurance providers typically set aside their best deals for new customers. You can take benefit of these at renewal time and maximise your savings.
The tendency of home insurers to reserve their best offers for new customers keeps their previous loyal customers devoid of the benefits and they have to in fact pay more during their second year of cover.
You can save money on your cover; but first you should know how home insurance renewal works. Here are some bits of information for you.
1. Auto-renewal – What is it?
Just like car insurance providers, several home insurance providers offer auto-renewal clauses in their policies. According to these clauses, unless you specify that you don’t wish to renew, your cover will automatically roll over at the end of the policy.
Your home insurance provider will notify you of renewal before you are signed up for the next year. The notice is typically sent by post, explaining the full details of your new policy and the premium you’ll have to pay.
It’s also explained in the document how to cancel and how long you have to have second thoughts. Most insurers contact their clients at least 21 days before the policy is renewed automatically.
2. Is there a Renewal Fee?
Renewal fees in home insurance policies are quite rare, but some insurers do charge them. Read the policy document carefully to ensure you’re not stung.
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3. Pre-renewal Deposit – What is it?
Some home insurance companies automatically take a deposit from you even before renewal so as to secure your business for one more year. This is generally one month’s premium and applies only to pay-monthly customers. It’s taken from your account one month before renewal. If you decide to continue, this amount is deducted from the premium of the next year.
4. Can I Cancel if My Policy Unknowingly Rolls Over?
Yes, you can, but this may come at a cost. You get a 14-day cooling-off period right after your policy starts and you are allowed to cancel during this period by most insurers, charging you only for the cover you’ve used.
However, some providers charge a fee if you cancel during the first 14 days. The fees can be more if you cancel after the cooling-off period; so, if you want to switch, make sure you cancel your cover before the renewal.
5. When to Start Looking for a New Home Insurance Policy?
A good time to start finding new home insurance policy is eleven months into your policy. Once you find one, you can either switch to it or use to negotiate with your current provider for haggling down the premium.
Consider buying a policy which has fixed premiums for three years if the premium is competitive.
Use these tips to make the most of your home insurance renewal and get the due benefits.
