Tempting as it may be to stick with the same home insurance company year after year, loyalty definitely doesn't pay.
If you can't remember the last time you changed your home insurer, then you are likely to be among the 31% of homeowners who are throwing away on average £125 a year unnecessarily- something few of us can afford at the moment.
Here, we take a look at what to do if your policy is coming up for renewal, and why it could pay to take your custom elsewhere...
Switch and save
A third of homeowners were found to automatically renew their home insurance with 20% of these faithful customers believing that they won't be able to find a better deal and a further 11% saying they can't be bothered to shop around.
The over 55s were found to be the most loyal to their insurers, settling with the same provider for an average of four years.
Peter Harrison, insurance expert at MoneySupermarket said: "Having the choice to automatically renew your home insurance is an appealing option for time-poor homeowners - but ask yourself, is it worth paying such a hefty price for the convenience? Shopping around for the best deal is quick and easy, but by not doing so, consumers are effectively watching their hard earned cash go down the drain.
"While mortgage providers strongly insist homeowners have adequate buildings insurance, it makes financial sense for every household to have combined buildings and contents insurance in place. Combined policies tend to offer the best value as well as providing cover for your home and garden against problems such as subsidence, burst pipes, and personal liability, all of which could land you with a bill for thousands of pounds.
"This is in addition to more common incidents such as burglary, accidental damage or loss of possessions away from the home."
A few small changes go a long way...
As well as switching providers, there are a number of other practical changes you can introduce to cut the cost of your home insurance. The primary concern of an insurer when considering your property will be how much risk there is and what precautions you have put in place to protect it.
For example fitting a burglar alarm could bring down the cost of your premium by up to 7.5% and if you were to join a neighbourhood watch scheme this could knock a further 5% off the price of cover.
Fitting mortice locks on external doors and two bolt locks on windows will also be looked on favourably by insurance companies as it reassures them that your home is secure.
Fitting smoke alarms is another small and inexpensive alteration you could make to your home that could afford you big savings. You should also be aware that the insurer is likely to ask whether anyone living in the property smokes as the risk of fire will clearly be higher and therefore, your premium will rise.
Combining your buildings and contents cover is another option to keep costs down as insurance companies are often willing to negotiate if you take both out with them.
Also, consider paying your premium annually rather than monthly. While this may initially seem like a big outlay, you are not paying the additional administration fee that comes with a monthly payment.
You could also consider changing your excess - the portion of any insurance claim you must pay yourself - to reduce your premiums.
You can choose to pay a voluntary excess, on top of the compulsory excess in to lower the cost of your cover. However, make sure you can afford the total excess in case you do have to make a claim.
Finally, make sure you do your research to ensure you get the best possible deal for your requirements. Consider whether you really need added insurance extras or just the basic policy. Adding on accidental damage cover for example can increase your premiums by 25%.
If your home insurance policy is up for renewal, compare prices now and get a quote to make sure you don't pay more than you need for cover.
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