Get the right insurance policy for you

It can pay to switch insurers

Even if your circumstances have not changed, it can still pay to switch insurers.

Defaqto found that competition for customers results in insurers offering large incentives to new customers while charging higher prices to existing loyal customers. The Internet has changed the way people buy insurance, especially home and motor insurance: "Previously customers got four or five quotes but now they can get dozens very easily," it said.

According to research by Tesco Home Insurance, more than a third of UK homeowners admit they haven't read their home and contents insurance policy and are unfamiliar with the level of cover and the terms and conditions. The same number could also find they aren't insured for engagement rings or expensive watches as they have never checked their insurers' individual article limits after splashing out on high cost purchases.

So, if you are intending to renew existing cover, make sure you read your policy. Two out of five people concede that, although they know their contents cover limit, they have never checked if it's sufficient for what they're actually insuring.

Insurance checklist

Tesco has produced the following checklist for people looking for household cover:

• Decide what you need - buildings and contents cover or contents only.
  
  
• Purchasing your buildings and contents cover together is usually better value than buying from two insurers.
  
  
• When you're shopping around for the best price, check that the policy limits and extent of cover are adequate for your needs - not all insurers are the same.
  
  
• Identify any valuables worth more than your insurer's individual article limit (jewellery, plasma TV, etc.) - you'll need to specify these items on your policy.
  
  
• Read your policy documents to familiarise yourself with the details. If you're in any doubt contact your insurer.
  
  
• Make a note of all your home contents and how much they're worth in total - you don't want to be under-insured.
  
  
• Keep your insurer updated with any changes that you think might have an impact on your policy.
  
  
• Consider if you need personal belongings cover while out of your home. It may be a false economy leaving it off your policy.
  
  
• Consider buying family legal protection cover - it could save you hundreds of pounds.
  
  
• Consider buying accidental damage cover - especially if you're a DIY enthusiast or have accident-prone children.