When is it "Too much insurance? "

A question about : When is it "Too much insurance? "

Hi - newbie here after some opinions please

I've had my home insurance with my mortgage provider (Halifax) since I bought my house 10 years ago. I'm happy with the mortgage (only Ј30K left, woohoo) but the insurance is Ј755 per year! Obviously this is a proportionately massive part of my repayments now.

I shopped about, and got quotes as low as Ј95, up to Ј217. I called Halifax to discuss and they tell me that my policy is akin to the Rolls Royce of policies, includes accidental on buildings & contents, and anything outside the home. I was told that not many companies sell this type of policy these days and comparison sites certainly don't offer it as it would be too expensive.

They reduced my quote to Ј709 so that's something ... but I'd rather it was Ј95

How can I feel safe reducing cover? My excess is Ј100 - I don't have any really topnotch possessions, I'm average, no flash ornaments or furnishings or clothes or tech or jewellery... partner has a pricey camera which might not be covered as it cost Ј1600 when the cover only works up to value of Ј1500 so I was told it wasn't covered anyway

I have continued the policy (was due for renewal today...) but I've got 30 days cooling off period during which I need to reconcile myself with reducing cover...

Has anyone heard of this type of policy? Is it ridiculous that I keep it? Opinion and if possible expert / experienced advice please !

thanks in advance

Best answers:

• They mislead you.
  You will find many (most!) run of the mill off the peg home insurance policies offer accidental damage cover for either or both buildings and contents as well as cover for your possessions outside the home.
  Read up the MSE guide to home insurance, get some quotes and save a load of money!
• Halifax offers re-badged Legal & General products, such as Home Insurance Choices.
  The quality is DEFAQTO four star rated and it includes trace & access cover which many of the plans at the top of comparison sites have seen removed.
  However, buying any "tied" product usually means higher premiums, so you may be able to get the same cover cheaper elsewhere.
• Halifax sell 3-5* products on the standard home scale. There is then the High Net Worth scale that sits above these and so even if its the top end of their cover its not the Rolls Royce but more the Audi/ BMW etc
  The reality is, just like cars, not everyone needs the Rolls Royce cover. Some of the HNW policies offer up to Ј10,000 of cash cover. Do you often have Ј10k? I know personally the Ј500 limit on my Axa policy is more than enough. Whats the point of paying top tier if you arent going to use it?
  There are some feature that are useful of the real top tier policies - all risks rather than specified risks, trace and access, matching set cover rather than just the damaged items etc and of cause hole in one cover
  Check which is the best value for you and switch to them
• Thanks for the suggestions guys - sorry about delay in replying, it took me a while to find my post again!
  I'll try to make an appointment to speak to a human today - I'll let you know what happens
  thanks
  pinkpebs
• pinkpebs - unless you have a lot of high value items and need a huge level of contents cover I would be astounded if you can't get a mainstream policy for substantially less than Ј700.
  The quote at Ј95 will probably not have accidental damage or cover for items away from home (the excess may also be higher) - only you can decide if the cover is suitable for you.
  Get a hold of your Halifax policy schedule and see what they are offering you for this extra money - cover levels for b&c, valuables limits, single item limit. You may also have some optional cover that you don't want / need - legal, home emergency, etc.
  Most mainstream insurers will offer Ј400k toЈ1m on buildings and Ј50 - 75k on contents as standard and the option to cover items away from home.You will also be able to find trace and access (but not on all). If these limits will cover you cancel the Halifax policy and go elsewhere.
  It doesn't honestly sound like a Rolls Royce policy if it has a Ј1.5k single item limit which won't cover your partners camera. You can find mainstream insurers that will cover Ј2, 3, up to10k single item. Or if there is a competitive quote with a lower limit you can specify the camera separately.
  I would not even bother trying to negotiate with Halifax (other than perhaps asking them how their policy is unique and perhaps making a complaint as I don't think you were well advised).
  Well done for deciding to review this - 10 years with a company is probably more than enough and possibly a reason why the premium is so high.
• Hello pinkpebs,
  Simple answer is shop around. I had a similar product to you from Halifax Home Insurance and had been a 'loyal customer' for a fair number of years. I thought I was paying a bit over the odds in the past but getting quotes on comparison sites was a waste of time as I usually got 75% of the way through the quote request only to be told to phone the company direct. Being self-employed I was usually too busy to bother. Ah me...... the joys of inertia marketing and auto-renewal!
  I visited a local broker yesterday with my renewal quote from the Halifax and asked for quotes with at least the same level of building and contents cover. Result? Slightly better cover at an annual saving of Ј970. To add insult to injury my Halifax quote said I was getting a 40% no claims discount!
  Today I have cancelled my Halifax Home Insurance policy and tomorrow I will be moving my various savings accounts with the Halifax as well.
  Get out there and look for a new insurance provider.
  DrummondS