If you have built up many years of no claim bonus, you can end up with a 70% discount on your insurance premiums. However, what insurance companies never tell you is that, if not used, any accumulated bonus is lost after 12 months.
Let’s say you sell your house and live in rented accommodation until you find yourself another home to buy. As the landlord is responsible for the building cover, you as a tenant would only need to insure the contents. However, if you buy a new house after 12 months, you will realise that instead of paying the usual £200 or £300 of buildings cover, you will be faced with an annual premium of more than £1,000. So, it might be worth your while not cancelling the insurance cover on your previous home……! This is food for thought.