Overlooking one key thing when finding home insurance could be costly, says firm
Households are being urged to dig deeper than the headline prices when buying home insurance, as analysis indicates that some could face contributing hundreds of pounds if they need to make a claim.
Financial information business Defaqto's analysis of home insurance products found that some excess levels have been increasing in recent years.
The excess is the amount that the customer pays towards the claim.
A high excess could outweigh the cost of some lower-value claims.
Defaqto said that in April 2025 the proportion of buildings insurance policies with a standard excess of £251 to £400 had increased to 13%, from just 2% in 2019.
The most common excess band of £51 to £100 has fallen in popularity, covering 45% of deals on the market, down from 60% in 2019.
Defaqto said it had also found several products implementing a standard excess of more than £400.
It also found that the proportion of policies that allow the standard excess to be reduced to £50 or less, in return for paying an increased premium, has fallen from 25% in 2019 to just 11%.
Many buildings insurance policies also specify an excess of more than £400 for escape of water claims, researchers said.
Contents insurance products are following a similar pattern, Defaqto found.
The proportion of policies on the market with a standard excess of £25 to £400 has risen to 11%, up from 1% in 2019, while the proportion of those offering a £51 to £100 excess has fallen from 59% to 46%.
Angela Pilley, a home insurance expert at Defaqto, said: 'While many people focus on the premium when choosing insurance, it's just as important to consider the excess.
'In the event of a claim, this is the amount you'll need to pay towards the cost, and in some cases high excesses can make it uneconomical to claim at all.
'If your excess is £400 and your claim is only £500, it may not be worth pursuing.
'Checking the fine print is essential to make sure your policy offers real value.'
Here are some tips from Defaqto for choosing home insurance:
1. Check the excess on both buildings and contents insurance – do not assume they are low.
2. Look out for specific claim excesses, such as for water damage or accidental damage.
3. Compare policies carefully and consider whether a slightly higher premium with a lower excess may offer better value.
4. Consider whether you could afford to pay a high excess if the unexpected happened.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
36 minutes ago
- The Sun
Major bar chain to shut ALL 250 venues across the UK for 24 hours next week in unusual business move
A CHAIN of popular cafe bars will close for 24-hours next week. The closure will affect more than 250 branches countrywide on Monday June 9. 4 4 Loungers opened their first store in 2002 in Bristol and have since expanded across the country. They are known for their wide range of food, cocktails and coffees, as well as each lounge having its own unique decor - with some customers not realising it's even a chain. The closure is so that it's staff can enjoy a grand celebration, which they call LoungeFest. Beginning in 2013, the event celebrates the company's 9,000 staff. In an announcement on Facebook, the company wrote: "Attention Loungers! "All of our Lounges will be closed on Monday, 9th June, as we will be heading to our annual staff party - Loungefest! "We do this every year to celebrate everybody's hard work. "Regular Lounging will resume on Tuesday, 10th June." Photos of the event show an exciting mix of music, fairground rides, and a healthy dose of partying. Guy Youll, Loungers' Chief People Officer told Wales Online: "Back in 2013, Loungers was one of the first in the hospitality industry to host a party like this and I'm delighted we've kept close to our roots by continuing every year getting bigger and better. Most popular treats for Brits on holiday "Our teams work incredibly hard all year round so LoungeFest is our way of celebrating them and showing how much we appreciate the dedication and care they put in every day at all our sites to deliver great hospitality. It's going to be quite a party!" Facebook commenters were pleased to see the company showing appreciation for their staff. One wrote: "Well done for treating your staff I hope the staff and you have a brilliant time." While another commented: "Oh that's a lovely thing to do for all the hard working staff." This year's LoungeFest will take place at Ragley Hall in Warwickshire. Its theme is 'at the movies' as the event will be equipped with funfair attractions, DJ sessions, music stages featuring live bands and performances by Loungers' employees - as well as games, activities and complimentary food and drink. 4 4 Loungers was founded in 2002 by a group of three friends on North Street in Bristol. They also run the popular Cosy Club chain of restaurants, as well as the roadside eatery Brightside. As of March 2025, the company operates 291 sites in England and Wales across the three brands. Its 250th Lounge - Pionero Lounge - opened in Rochdale in January 2024. With plans to expand with 10 more restaurants, loyal customers have been begging the company to come to their town. The company won the employer of the year award at the Casual Dining Awards 2025.
Telegraph
37 minutes ago
- Telegraph
Who owns the news? It must not be a group of foreign powers
Who owns the news? Much of the Left has been obsessed with the issue for over a century. They have long railed against press barons and their supposed bias. So it is perhaps surprising that this Labour Government is taking such a lackadaisical approach to foreign states having substantial holdings in British newspapers. The last Conservative government back in December 2023 intervened to put on hold and scrutinise the proposed sale of The Telegraph to a company backed by Sheikh Mansour, the deputy prime minister of the United Arab Emirates. Columnists, including Charles Moore, The Telegraph's former editor, rightly argued that even if there was no actual interference in the newspaper's editorial line, there would be the perception that the paper would no longer be independent. This would fatally undermine the newspaper's standing by throwing away its reputation for fearless reporting, whatever the reality of the situation. The then government listened and last year, in the Digital, Media and Competitions Act, introduced a new regulatory regime to restrict foreign state ownership of newspapers and news magazines. But this Act only set out the broad principle, not the details of how it would be implemented. A total ban would come with its own problems. There would be little risk of editorial interference if, say, the sovereign wealth fund of Norway was a passive investor owning 3pc or 4pc in a UK-listed media company. During the consultations, it was proposed that a 5pc limit may be appropriate to allow for such holdings. Last month the new Government announced that the threshold would not be 5pc, but actually 15pc. I and many of my colleagues in the House of Lords have serious misgivings about this much higher limit, but it is one we can live with. However, there is another aspect of the draft regulations which is unacceptable. The 15pc threshold is not cumulative, it applies to each individual holding. This means that there would be nothing to stop multiple states each owning 15pc of a newspaper. It has been reported that after The Telegraph's proposed takeover by RedBird Capital, Sheikh Mansour intends to retain up to a 15pc stake in the newspaper. With the current proposals there would be nothing to stop, say, Saudi Arabia, Oman and Bahrain from each taking 15pc holdings. A cumulative 60pc of a British newspaper owned by foreign states is a very different proposition. The guarantees against foreign control would have evaporated. Has this potential scenario arisen as a result of an oversight by Lisa Nandy, the Culture Secretary? Alongside 50 of my fellow peers, I have written to Ms Nandy asking for clarification. Signatories include former chancellor Lord Lamont, former trade secretary Lord Lilley, long-time chairman of the 1922 committee Lord Brady, ex-director of public prosecutions Lord Macdonald and the current chairman of Ipso, the independent press regulator, Lord Faulks. Our fears could be easily assuaged by simply amending the proposed regulations to ensure that 15pc is a cap on total foreign ownership. If the move is deliberate, it raises serious questions about this Government's commitment to a free press. The statutory instrument implementing the Government's regulations has now been laid and will shortly come before both Houses of Parliament. If the proposals reach the Lords in their current form, I and many of my colleagues will not be able to support the measure. The Telegraph's ownership has been left in limbo for two years so far. It is time for the new regulatory framework to be put in place that will allow its smooth transfer to new owners. But this must be done in a way that entrenches the traditional freedoms of our press. The issues are much wider than the future of just one newspaper.
BBC News
40 minutes ago
- BBC News
Woodbridge not suitable for active travel plan, say residents
A £5m project aiming to encourage sustainable transport methods is not suitable for a market town, residents have claimed. Suffolk County Council was awarded funding from the government's Active Travel England scheme in 2022 to look at ways of making walking and cycling journeys easier in Woodbridge. Changes proposed include widening of some pavements and creating a one-way system for traffic toward Market HillA recent public consultation saw 433 responses as the council now looks to review the plans over the next year but some residents said the consultations were handled "poorly". Chris Mapey runs the Angel pub, just off Market Hill and said while on the face of it the project was a "cracking idea", he was believed it was for the wrong town."The problem we've got with any small market town is it's a fine balancing act - we want to try and preserve the town as much as we can but we also want to have decent levels of footfall," he said."If you make Woodbridge too closed off, we're right on the doorstep of Martlesham [Retail Park]... so you end up losing, conceivably, a lot of footfall."It's been very frustrating for business owners to know where to turn." Woodbridge resident Neil Armstrong Boast similarly felt the council's consultation was "poor"."They hid road closures by the use of buzzwords and people lost faith when at the public meeting held in the community hall, the councillors wouldn't state what their preference was," he residents have spoken in favour of road and pavement improvements but some feared the project would negatively affect those who rely on cars and buses. "Wider pavements are a lovely idea but at what cost to free and efficient movement around the town for the less mobile," fellow resident Alison Parish said."I envisage that this will create more traffic hold-ups, longer journeys - time wise and distance - and people will avoid going into the town to shop and socialise." Ruth Leach, Lib Dem county councillor for Woodbridge, said she initially believed the project would be difficult to implement but felt progress had been made."The project has changed shape from what was initially proposed but I am very confident that we are getting closer to something that is going to perfect for Woodbridge," she said."With a budget of £5m I am very keen to work tirelessly on it to make sure it is something that stays in Woodbridge and we can benefit from it."She stressed the project did not seek to remove cars from Woodbridge. A spokesperson for the county council said the project aimed to give people better choice in how they travel for local, shorter journeys and the level of response for the consultation process had been "higher than expected".They said people had been provided options to fill either an online or paper survey and there had been drop-in events during both weekdays and weekends to "maximise people's ability to attend", while local businesses and key stakeholders had been engaged with to "ensure that all voices" were heard. Follow Suffolk news on BBC Sounds, Facebook, Instagram and X.
