Home Insurance Companies - How to Choose the Best One for You

Are your household possessions safe? Home insurance is viewed by many to be a necessity.  About 78% of households in the United Kingdom have contents cover, and 63% at buildings or structure insurance.  Whether you are a homeowner or a tenant, it's important to protect your home and possessions against damage or destruction caused by natural disasters or crime and vandalism.

There are hundreds of home insurance companies authorized to do business in the UK.  The top ten companies account for about 72% of the market.  Everyone agrees that the way to find the best home insurance policy at the cheapest price is to shop around.  But the prospect of shopping around among hundreds of companies can be daunting for even the most diehard shopper.  Let's look at some of the points on which you can compare home insurance companies so that you can make an informed decision.

What about claims service? Obviously, it would be much better if you never had to contact your insurance company because of a loss.  Unfortunately, we don't live in a perfect world; hence, the need for insurance.  You should compare home insurance companies on how easy it is to make a claim.  Do they have a claims hotline?  Are they available for contact 24 hours a day, seven days a week?

On the flip side, does the company offer a discount if you don't have any claims?  Many home insurance companies have begun rewarding their customers who go for a certain period of time without having a claim on their insurance policy.  Sometimes these premium discounts can be significant, ranging from 30 to 50%.  These savings may not be something that you can access right away, but the amount of the discount might be enough to help you make a decision.

The Internet is making it possible for more and more consumers to deal with the home insurance companies directly.  Recent studies of insurance buying habits have indicated that fewer people are dealing with insurance brokers and more are dealing directly with health insurance companies.  Since this is cheaper for the company, many providers are now offering a discount if you sign up online.  They may offer as much as 10 to 15% off rates or give you a flat 50 pound refund. If everything else is equal, then you might want to go with the company giving you the best signing discount.

Larger home insurance companies that offer different kinds of cover may give you a discount if you club several types of policies together with them.  For example, one provider offers 10% off home insurance premiums for all of their motor insurance customers.  If you're already happy with the service being provided by your automotive insurance provider, this alone could help you decide.

There are additional ways to distinguish between home insurance companies.  Some offer attractive monthly payment options.  Others offer to replace the locks in your home if your keys are lost or stolen. Given the competitive nature of the market, home insurance companies will continue to offer special deals in order to win your business.  So don't let the large number of home insurance companies out there overwhelm you.  More players in the market means better deals for you.