Home Insurance: Should You Go Through Your Bank

Homeowners are often encouraged to get home insurance through the bank they are doing business with. The reason for this is mostly for the benefit of the bank more so than the client because banks most often have relationships with the insurance providers they recommend. This means that they stand to make money from your insurance, which usually involves earning interest off your premiums.

Going this route is however the simplest way to get home insurance. Banks tend to show favour to clients who agree to get home insurance them by speeding up the transfer process or by offering other attractive benefits that would encourage clients to agree to insurance through the bank. There is nothing wrong with this except for the fact that when choosing any kind of insurance, you should be allowed the freedom to explore your options and research the best deal for you in terms of your requirements as well as your budget.

What Lies On The Other End Of The Spectrum

The National Credit Act of 2007 requires banks to give clients more options when it comes to presenting them with an insurance provider. They of course will still try to plead their case above all else but you now have the option to look at other insurance providers to make comparisons.

With independent insurance providers you are in a better position to seek the kind of cover that suits you in terms of what you need as well as what you can afford. Premiums tend to be lower and you often get added benefits and better service – all put in place to create a competitive advantage over providers owned by banks.

Knowing that you can save money by going the alternate route should be enough to encourage further investigation in this area. Your bank might have illustrious stories of why insuring through them would be your better option but you can’t really know this for sure unless you do your research.

Look at about three different providers and compare the home insurance packages on offer in terms of benefits, services and premiums. Make thorough investigations into how they work so that you know what you are getting into in no uncertain terms. You are most likely to find that the option of insuring through your bank is actually not the best one available to you even though it might present as the most hassle-free.

At the end of the day you need to decide what is important to you. If you want a solution to your home insurance that is convenient and as simple as possible then it might be best to insure through your bank after all. There will be no additional hoops to jump through and approval is practically guaranteed.

However, you should consider alternative options if you are interested in lower premiums and better service to start with. With a little more effort you will be able to find an insurance provider that is just right for what you need and can afford at the time. You will most likely have to make much effort to prove to your bank that you have acquired adequate cover, which could prove an uphill climb but at the end of the day it would be entirely worth it.