Customers arranging home insurance through GoCompare are set to benefit from a free home excess cover, aimed at reducing the cost of making a claim.
Over two years since the comparison site first launched free excess cover for anyone buying car insurance, now GoCompare Home Insurance is also giving away a free £250 home excess cover to those who buy a qualifying home insurance policy.
This means that customers who need to make a claim on their home insurance policy will be reimbursed up to £250 excess when their home insurance claim has been settled - this excludes Accidental Loss or Damage claims.
Hannah Isitt, home insurance spokesperson for GoCompare said: “This is just another initiative from GoCompare that helps people better protect the things that are important to them, and at a time when they most need it - when they need to make a claim.”
Previous research from GoCompare has revealed that policy excesses can be a misunderstood part of an insurance policy, with one in ten car insurance customers not realising just how much they had agreed to contribute when they took out their policy.
What is an excess?
An excess is the amount you will have to pay upfront towards a claim you make on your insurance. There are two main types - compulsory and voluntary - which combined make up the ‘total excess’.
The compulsory excess is set by the insurer and will vary depending on several factors and the voluntary excess is chosen by the policyholder.
To reduce the overall cost of premiums, some people agree to make a larger contribution (voluntary excess) if they need to claim, however, while this may lead to a lower annual premium, in the event of a claim, this voluntary excess is added to the compulsory excess - meaning that the total payable will be higher amount towards the cost of a claim.
Customers should think carefully about the amount of voluntary excess they choose when buying an insurance policy and also check the total excess payable, to make sure they can afford to pay it, if they need to make a claim.
Hannah explained: “Having to make a claim on any type of insurance policy is a stressful time, so if the upfront payment that a policyholder has to make is much more than expected, it can lead to more worry and even financial hardship.”
Excesses payable on a typical home insurance policy can often be more complicated than standard car insurance policies. For instance, heave and landslip claims often come with a higher excess, typically around £1,000 whereas an escape of water claims excess can be lower - around £350, but the exact values will vary by policy and insurer.
Other claims, such as property damage, fire, theft will usually be for the total excess on the policy chosen by the customer.
Hannah said: “Comparison sites have always displayed the excesses you will pay on an insurance policy, and at GoCompare, you can edit the quote to see how different voluntary excess levels could impact the premium. However, if you are considering opting for a higher voluntary excess to save money on your premium, make sure you’re comfortable with paying more should you need to claim.
“Customers should also remember that to make a claim on their insurance policy, the value of any damage or repairs must exceed the total excess, otherwise the insurer will refuse the claim.”
How do I get the deal?
To qualify for free home excess cover, customers will need to compare home insurance and buy through GoCompare.
In the event that they need to make a claim on their home insurance, they will have to pay or have their excess deducted and the home insurance claim will need to be settled.
Customers have six months from the date their home insurance claim is settled to make a claim on the home excess cover.
For more information about excesses and the new excess offer on home insurance, you can read more on the GoCompare website here.
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