The insurance policy lapsed home a reminder to shoparound

Reader's House had been supported, but a new insurance policy meant premiums fell. Photo: Andy Drysdale/Rex features

Among a pile of letters I found recently a notification for the renewal of our homeowner's insurance, only to discover that it was lapsed two months earlier. I immediately phoned to renew, but the insurer – Woolwich/Barclays – told me how it was going down that I had to start with a completely new policy.

Fair enough, but I was a little worried as one corner of my property had to be 14 years ago – supported the work carried out under the same insurance policy. When I had previously tried to get alternative quotes, tick the box "subsidence" always seemed to involve a rejection of coverage. I feared that the prize would shoot up from the mentioned £790.

However, the very phone operating profit took down the usual indications, and after several consultations with their subscribers are returned to me with a quote of £254. I'm not normally one to look a gift horse in the mouth, but a query just to be sure that the cover was equivalent, and they said it was. The change could be due to a revision of postal codes.

Then it occurred to me that just a few months before he would happily have accepted £790 for the same cover and carried on this way for many years to come. This type of frequency fluctuation mad is common? JS, Thames Ditton, Surrey

On money we have always advised customers to look around home insurance at renewal, and your letter is an example of why. There are hundreds of thousands of families overpaying because blindly renew each year. As you point out, had turn doing just that you have overpaid by £ 5,000 in the following decade. Insurers also mention new customers discounted prices and then up to the premium in subsequent years. Is the way the industry works.

Barclays says that as a new customer you have received an offer that has reduced the award of about 20%. It also says that the new policy was a price on "criteria" as a higher level of excess and fewer occupants.

I certainly don't advocate letting the political decadence, but in this case has a happy outcome.

Welcome letters, but cannot respond individually. Send us an e-mail to consumer.champions@guardian.co.uk or write to consumer samples, money, the guardian, 90 York Way, London N1 9GU. Please include a phone number during the day