Martin Lewis’ MoneySavingExpert website has warned homeowners to check their home insurance policy now before an expected bill rise.
Consultancy firm Ernst & Young predicts home insurance costs will rise 30% this year, in another cost of living blow for Brits.
The expected increase is due to higher costs for building materials, replacement items and labour, explained the MSE team.
But if your home insurance policy is due to expire, you should see if you can lock in a cheaper price today before premiums go up.
Writing in the latest MSE email, the team said: “EVERYONE should check now if they can save - as if you can lock in today's premium, you can forestall rises for a year.”
The average cost of home insurance is currently £159, according to Compare the Market – up £7, or a 5% rise, on a yearly basis compared to 2022.
Home insurance covers you if something bad happens, such as a fire, burglary or storm damage.
But what exactly you’re covered against depends on the type of policy you take out.
The three main types are: buildings insurance, contents insurance and combined buildings and contents insurance.
If your home insurance policy is up for renewal, use multiple comparison website to check for the best prices - such as Compare the Market, Confused.com and MoneySupermarket.
You may also want to go directly to some insurance providers that don’t appear on comparison websites, such as Direct Line, to see what quotes they can offer you.
Once you’ve found the cheapest price, call up your existing provider and see if they’ll beat it.
Finally, if you do go for a new quote elsewhere, see if you can use cashback sites Quidco or Topcashback to get up to £37 back.
MSE says 21 days before your home insurance is due to expire is the prime time to find the cheapest deals.
Compare the Market research shows household bills have surged by up to £747 in the past 12 months.
It means families now typically need to pay a hefty £5,785 each year for their regular bills – an increase from £5,038 last year.
As a result, 58% of households have cut back spending on clothes and 54% are spending less on food in the past six months.
More than six in 10 (64%) have been able to save up to £150 in the past six months.
