Unfortunately, a number of insurers are chasing price points in response to consumer demands, compounding the problem. This is not least where there are already individual insurance companies already targeting the budget section of insurance markets.

The problem of course being that the danger increasingly becomes one of consumers buying into home insurance on price alone, without properly checking that they have adequate cover for their individual circumstances.

Additionally, many consumers simply do not realise, or care to consider, that cheaper insurance tends to come at the cost of support. Which is fine so long as everything is running smoothly, but causes stress when a claim needs to be filed.

Ironically, as A1 brokers recently found when comparing home insurance reviews, some of the big name insurance companies are still able to compete on price, even against traditional budget insurers. The caveat being that many of these bigger insurers have well-established claims procedures and the support structure to go with them.

Of course, while it benefits the consumer to know that insurance markets are so competitive, the big concern is to ensure that cover is more than adequate.

What many people do not realise is that there are a number of exclusions that can apply for any individual home insurance policy - whether for contents, buildings, or both - which may not come up on a direct price comparison.

Common exclusions can be based on location, building age, and even the status of the person looking for insurance.

Even where cover is exactly what the consumer needs, they still need to be careful they go with an insurance company with proper support in the event of a claim. As the house insurance blog recently commented, “budget providers come under particular fire for not providing enough support or clearing claims faster.”

In other words, there are two key lessons for consumers:

1. Ensure you are probably covered
2. Ensure you are covered by a reputable and reliable company.

There are plenty of review websites out there, and searching for “review” of a particular home insurance policy or insurer should help identify some of the better insurance options out there.

Either way, the key lesson is that budget home insurance may not always be the cheapest in the long run, and that in many instances, as with all consumer products, “you get what you pay for”.

http://www.nationwide.co.uk/mediacentre/PressRelease_this.asp?ID=1470

For those due to renew their home insurance soon or for those without it, National Home Security Week (19 October 2009 to 25 October 2009) is a good reminder of why no home should be without it. It is a perfect time to start shopping around for the best deals.

These days, price comparison websites are used by some consumers to compare the costs of different insurance providers. When doing so, it’s possible for consumers to be engrossed in the cost, searching away for the cheapest deals and forgetting about other things that should be considered when taking out insurance. Consumers should check out which items or situations the insurance specifically covers and whether it offers the ability to pay in manageable instalments. This is worth noting because policy features can be just as important as cost.

With Nationwide’s 5-Star rated buildings and contents home insurance – which isn’t available on price comparison websites – customers can rest assured that they are getting a great product and a great service. What’s more, extra value is also on offer because the Society currently provides 20% off now and 20% off next year3 when purchasing and renewing buildings and contents cover together. There is also an extra 10% off this year’s premium if purchased online – this discount will be deducted consecutively from the premium once other discounts have been applied. Furthermore, Nationwide’s main FlexAccount customers receive an extra £20 off the premium in the first year if the application is made in a branch or over the phone.

• No extra charge for paying monthly by Direct Debit;
• The cost of temporary accommodation if the home becomes uninhabitable due to insured damage;
• Unlimited buildings cover for eligible properties;
• Up to £1,000 cover for contents in the garden and up to £500 cover for plants in the garden;
• Cover for accidental damage to home entertainment equipment;
• Up to £500 cover for the spoiled contents of the fridge and freezer;
• Up to £1,000 cover for the cost of replacing downloaded information, lost due to an insured peril;
• Cover for students’ belongings while at university or college (up to sum insured).