Nearly 18% of homeowners take out home insurance from their mortgage provider as they falsely believe it may help with their application. 24% purchase their lender’s insurance policy to save time and yet they could be saving hundreds on the insurance costs new research from Sainsbury’s Bank has found.
Home insurance overall is becoming more expensive with 79% of customers experiencing a premium increase in the last three years, and over one in five showing a rise of more than 10% in that period. However, 35% of policyholders who took out household insurance from their lender did not shop around the next year and could be paying double the national average.
Data from the Consumer Intelligence panel reveals that people who purchase insurance from their mortgage provider can be paying 104% more for their buildings and contents, 147% for buildings only, and 113% for contents cover more than the national average.
“We have offered massive savings to customers in the past three months that have transferred their home insurance to us from their mortgage provider. We recently saved one client over £1100 on their annual insurance costs, so much that they were considering using the money on a second holiday this year. At Sharrocks we have unique relationships with insurers that allow us to insure all types of property both home insurance, let properties and unoccupied buildings. To avoid seemingly inevitable annual insurance premium rises we check the market year on year so you don’t have to,” advised Alan Doucy, Managing Director of Sharrocks.