Five Star Holiday Deals

What Makes a Five Star Home Insurance Policy?

When shopping around for home insurance, many of us go in search of the cheapest available deal. However, will the cheapest deal always give us the cover we need?

Independent analysts such as Defaqto offer ratings to insurance policies it deems to meet a certain standard to help consumers make better decisions about the right financial products for them. So how do these ratings work?

Why quality is important

If you choose a policy based purely on price, it may suit your pocket but it’s unlikely to adequately meet your needs. Should an event occur you may find that you’re left out of pocket because the policy does not provide the cover you expected.

As a result policies are offered ratings from one-five stars based on the overall quality of the product. So for example, if you looked at two products – one with a five star rating and the other with a four star rating – then the five-star rated product will generally offer more features and benefits.

Among the sort of features you may find on a five-star policy are:

- No extra charge for paying by monthly direct debit.
- Cover for temporary accommodation costs if the home is uninhabitable.
- Accidental damage cover for entertainment equipment with an extension of cover available.
- Cover for fridge and freezer contents.
- Students’ belongings cover when taken to college.
- Cover for music downloads.
- Cover for garden contents.
- Unlimited cover for a building in case it burns down.

Note that these features are not standard with every policy that has a five-star rating, but you are more likely to find these benefits with higher rated policies.

What about price?

The ratings that policies receive bear no relation to their price. Of course the more features a policy contains the more it is likely to cost – so the key for the average homeowner is to get the balance right between features and price.

This can be done with a comparison website which allows you to compare home insurance policies. These search tools show the cheapest deal at the top of its listings but by scanning down the list of options you may find a more suitable home insurance product that combines value for money with suitable cover.

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Posted by admin - December 3, 2016 at 7:30 pm

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