Caution over Christmas insurance offers

Insurancewide.com is warning home insurance customers to compare the market before committing to special Christmas discounts and special offers by insurance companies.

As Tesco and other insurers seek to entice new customers by offering a seasonal 10% increase in home contents cover, the insurance comparison website points out that long term suitability of the policy is more important than seasonal offers and discounts.

"Consumers need to stay savvy and examine the different elements of such offers closely, particularly the exact increase in the amount insured" , advises James Harrison, chief executive. "For example, some Christmas gifts intended to be covered by seasonal cover increases may be worth more than £1, 000 or £1, 500, in which case they would need to be insured separately anyway."

"It's great that insurers are remaining competitive and offering their customers a chance to save money. But we urge people to pay close attention to the increase in the sum insured, to compare like with like, watch out for unexpected policy exclusions and check other insurers' offers according to their precise needs before being lured by advertising campaigns.

"It's also important to know that attractive seasonal offers and initial discount periods are often outweighed by a large hike in premiums later on.

There is no substitute for shopping around and in order to do that you need to know the value of your possessions and how they are likely to increase not just over Christmas, but over the course of a year."