Norman Wells wrote:
Invisible Man wrote:

The house is unlikely to collapse or hit an aeroplane, so what's it
for exactly? What are the most common claims?

So, just one claim on house insurance and two minor ones on contents.
You've obviously made a substantial loss on premiums overall then, as I
have.

I'm thinking of not renewing mine (£300 quoted) as I think I'm
relatively low risk. You are too, so why do you pay to keep it going?

The point of insurance is not to get back what you paid in. Think of it as
a bet which you would prefer to lose. You insure things because the
potential loss is more than you could sustain. It is based on the
assumption that a small premium buys peace of mind in the case of a major
disaster; that most people will pay the premium but not need to claim.
Unfortunately too many people think that they have lost out if they don't
get back the premiums by making a claim, the consequence is that the
premiums go up and insurance is poor value for everybody.

If its contents insurance, and you don't have anything valuble that money
can replace then you possibly don't need it. On the other hand, unless you
have the cash to rebuild your home if it burns to the ground, you almost
certainly need buildings insurance. Public liability insurance is perhaps a
corner case, your less likely to attract ambulance chasers if you have
nothing.

The best way to cut premiums is to have policy with a high excess: it
assures the insurance co you will not be making small claims.


--
djc