Given the decline in property prices, should I expect to pay less for my home insurance?
Curious what I should expect to pay if I look for a new home insurance policy.
Buildings insurance cover is based on rebuilding costs, so often not. Most of the time if you pay £150,000 for a house, this will include the land, garage etc and you would expect to pay a lower amount for rebuilding costs, which is always mentioned in the surveyors report, so in answer to your question, no.
The cost is dependent on where you live as it will cost a lot more for a buildings insurance policy in a city than it is in rural areas, and the type of house you have and its age, so it is impossible to give you an idea of how much you should pay. It is best to look on a price comparison site - that should give you a good indication | 01.04.11 @ 08:10
As Paul has said, your home insurance will be based on the rebuild cost of your home which in extreme areas could actually be more than the market value.
it is vital not to deliberately underinsure yourself just to save on the cost as an insurer might see that as an attempt to defraud them and they could use it as a valid reason to void your policy - certainly not worth the risk.
although comparison sites might give an indication of price, dont rely on them fully as you need to be comparing the degree of cover as well as the cost - a very similar question has been asked on this site about "how much should i pay for critical illness cover". | 01.04.11 @ 12:41
Another note to my comment above is to consider the rising cost of insurance due to claims, although your individual claims history will often make little difference to your renewal cost (unless if your insurer operates a no claims discount) the general cost of insurance claims tends to rise every year due to the actual cost of the work to be undertaken and the "sudden" claims that have arisen from mass flooding etc. | 01.04.11 @ 12:45
Your individual build cost will depend on the type of property you have, the location, and any special factors which would influence how much it would cost to build from rubble.
The insurance cost will then vary based on claims experience, which is dependent upon how comprehensive your insurance is (accidental damage?), and demographic factors which make a claim more or less likely.
Finally it will vary based on how competitive the market is, some years there is a lot of capacity, and costs will drop, some years it is much tighter, and costs will rise.
These various factors will dwarf any small change in the costs of builders as a result of the wider housing market, and may e in line with them, or may be opposite in effect. | 01.04.11 @ 13:12