Research by moneysupermarket.com suggests there is a large variety in the amounts home insurers charge for the ability to pay monthly.
The comparison site found consumers who want to pay their annual home insurance premium in monthly instalments may have to pay extra for the privilege. The research found that on average homeowners could expect to pay an additional 11.89% on top of the cost of the original premium. However, by shopping around for the best deal, the extra cost could be reduced to 5.36%, and in some cases, 0%.
Home insurance monthly repayment structure typically involves an initial deposit (around the value of two months instalments) – the remaining balance is then paid as a set amount over nine or 10 months.
Pete Harrison, insurance spokesperson at moneysupermarket.com, said: “Paying for home insurance on a monthly basis is a great way to help manage the household budget – ensuring the cost is spread out over the year