Is Buying Home Insurance From Your Mortgage Provider A Good Idea?

Protecting your property with home insurance, especially when you’ve got a big estate, or the contents of your home are very valuable, is essential. When taking out a mortgage, most providers try to sell home insurance with the package, and the majority of people tend to take this option – mortgage providers insist that your home is covered one way or another. Sadly however, homeowners could be paying well over the odds for their home insurance.

It may seem like the most hassle-free way at the time, taking out home insurance with your mortgage, but that doesn’t mean that you’re getting the best deal. In fact, it’s highly that you won’t be, compared to surfing the web and the rest of the home insurance market.

Insurance From Your Mortgage Provider
No matter what your mortgage provider tells you, it’s entirely your choice whether or not to take the home insurance policy they’re offering you. They may insist that you have one, but that doesn’t mean that you have to have one with them. The chances are that you’ll find a much cheaper policy elsewhere.

According to recent statistics, people that take out mortgages with home insurance policies lose around £600m every year, and that’s in the UK alone. Instead, these people should not be renewing their home insurance with their bank – they should be comparing the market for all the best deals for their homes!

Some homeowners who have realised they’ve been paying over the odds for their combined home insurance and mortgage have even tried to get compensation. One lady in particular, who paid £30 a month over 30 years, discovered she could get the same amount of benefits with her home insurance for £14 per month. Unfortunately, banks are under no obligation to tell you about the better deals in the market – it’s your job to compare the policies you’re offered.

15 years ago, the Office of Fair Trading outlawed mortgages that had to be sold with home insurance, however before that it was just considered the norm. Nowadays, customers are encouraged to shop around, whether it’s for the best mobile phone packages, home computers or holiday insurance. Don’t settle for anything less than the best home insurance deals.

Getting Insurance Elsewhere
In the midst of a recession, everyone is looking to save money where they can – and this applies to home insurance too. Shopping around for a better deal will not only educate you about the new benefits that are being offered with home insurance, but it could also help you to reduce many of your other utility bills.

Price comparison websites are the best tool you have to save money on your home insurance. In just a few clicks, you’ll be able to compare hundreds of policies from a diverse range of insurers, and many will instantly offer you better deal. Once you have your new policy, make sure you provide a copy to your mortgage providers, as they’ll want to see proof that your home is protected.