Martin Lewis issues '21-day trick' as home insurance costs surge

The Martin Lewis team has highlighted how Britons can protect themselves against spiralling home insurance bills that have soared 42 percent in just 12 months.

People can save hundreds of pounds by taking a few simple steps, according to his moneysavingexpert.com (MSE) team.

Simply refusing to accept an automatic policy renewal is top of the to do list and then shopping around – using several price comparison website – is essential for prudent households.

At the same time, it is vital – if possible – to avoid paying in instalments as this can add punishing interest rates charges to the final costs.

But the MSE team said that the date that a household looks for new cover before it is due to start can also help to ensure a good deal.

Specifically, they have found that searching out cover 21 days ahead of the start date is most likely to cut the cost.

MSE said: “Home insurance protects you if something drastic happened to your home, such as a blaze, burglary or storm damage.

“What cover you need will depend on your circumstances. For example, buildings insurance is usually only for freehold homeowners (otherwise it's the management company or landlord's responsibility – check your lease if you're not sure).

“When it comes to contents insurance, everyone should consider this as it protects you against loss or damage to your personal belongings.”

There are three main types of home insurance:

Buildings insurance. This covers the structure of your home and permanent fixtures and fittings.

Contents insurance. Turn your home upside down and everything that falls out would typically be covered. Everyone should consider this, though if you're renting we've a dedicated Tenants' contents insurance guide.

Combined buildings and contents. This is one policy to cover both types above, and is a common choice if you own your home's freehold, as it's usually cheaper. It can also make claims easier as there's only one insurer to deal with.

Cheap home insurance tricks

1.NEVER auto-renew. Insurers can no longer charge existing customers more than newbies, but most can still save by switching

2. It's cheapest to get home insurance quotes about 21 days before you need the policy to start

3. Saving from switching is not just for those at renewal – though factor in cancellation fees

4. Use free online calculators to make sure you don't over or under insure

5. Better locks and security can bag you cheaper policies

6. Check if one policy for your car AND home insurance works out cheaper

7. For the cheapest policies, you'll usually need to pay annually

8. Consider whether add-ons such as accidental damage, mobile phone cover and legal expenses are worth it

Find out more here.