The Federation of Master Builders

Why cheaper insurance is not always the right insurance

Published date: 20 July 2020

When it comes to searching for insurance, many of us look to save money and go for the cheapest rate possible. However, cheaper does not always mean better and it’s important to do your research before going ahead with a new policy. Whilst saving money is an alluring prospect, choosing the cheaper alternative could cost you more money in the long run.

It’s important to have peace of mind when it comes to insuring your business or home. Here we offer some advice on quality versus price and what to consider before choosing your provider:

Research your policy and check what’s covered – a cheaper alternative may mean that you are not covered for everything you’d expect. Check the small print and the exclusions. For example, cover for projects such as flat roofs, basements or modern methods of construction may not be included. Many policies omit these aspects and require further cover, which ends up expensive in the long run. Reinstatement value for conversions is another inclusion to consider. Are the fees transparent or will items later be added to your original quote? Also consider your business insurance as well as your project sites. What are the conditions of your tool or van cover? Is your main office building insured?

Check who underwrites the policy – is the company at least A rated? Are they credible and covered by the Financial Services Compensation Scheme (FSCS)? Would you be eligible to complain to the Financial Ombudsman Service (FOS) if you needed to?

Understand your own needs before you start searching – how many staff are you insuring and does the policy include the same number of contractors? Do you require cover for the loss of income as well as damage to buildings and contents? Make sure you know exactly what is covered on your insurance and that you have the right level for your needs. Consider both the work being carried out on properties and sites and your own office space and tool, plant and van requirements.

FMB Insurance is a subsidiary of The Federation of Master Builders, which means we know the construction industry. We can help advise you on the right level of cover to suit your individual requirements and protect your builds now and for the future.

We offer value for money and peace of mind, and here’s why:

  • One point of contact – We are not a huge call centre. From the word go, you are assigned a personal representative and will maintain that contact throughout your time with us, meaning a more personal level of service and not having to deal with different agents each time.
  • Our expert and qualified in-house surveyors have over 60 years of experience.
  • Our policies are underwritten by A rated insurers or better. We only work with market leaders.
  • Our underwriters are covered by the Financial Services Compensation Scheme.
  • Transparent pricing with no hidden fees.
  • If you’re taking out a New Homes policy, we don’t require customers to put money into an Escrow account.
  • We honour loyalty – we try wherever possible to be as competitive as possible for our members and repeat customers.

Our team are always here to talk through your policy or requirements and answer any questions you may have. Call us on 01353 652760 or visit our Product Pages for more information. 

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