Halifax tempts households to switch with 'thank you' bonuses

A new home insurance offer will reward customers with £50 when they switch to the policy and £50 every year they renew it.

The Halifax's buildings and contents cover will offer indefinite cash rewards to customers and is the first of its kind in the UK home insurance market. However, if a claim is made, the "thank you" bonus will no longer be paid at renewal unless it is a claim under an optional additional product such as key recovery.

Sarah Cowx from Halifax Home Insurance said the offer was being introduced because research showed that customers wanted to be rewarded for their loyalty. "Other insurers give discounts and incentives to tempt customers in, but we are the only one to reward people for their loyalty year after year with a £50 'thank you'."

Customers will also be able to cash in on a no-claims discount of up to 30 per cent, in addition to the annual loyalty bonuses and any saving they make when switching their buildings and contents insurance to the Halifax.

Nevertheless, staying with one firm year in, year out may not be the best bet. According to Tesco Personal Finance – which last week expanded its price-comparison service to include home cover – up to four million homeowners were hit with a price hike last year when it came to renewing with the same provider.