A guide to paying less for home insurance

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When looking at personal budgeting and ways you can save, it’s easy to overlook insurance as part of your review. But if you do, you could be missing out on some decent annual cost reductions.Home Insurance

In fact, the Association of British insurers recently estimated consumers could save as much as 30% on their home insurance premiums.

As the cost of insuring a family house in an area with an elevated crime rate, for example, could come to £600 a year, you would save £180 annually. That’s £1,800 over ten years, almost enough for a new boiler!

Here are a number of key ways you can go about cutting your cover costs:

  • Make sure you shop around

If you stick with the same insurer year in, year out, you’re on to a loser. Insurers don’t tend to reward customers for their loyalty. In fact, they nearly always offer the best deals to new customers.

Make sure you shop around at renewal time and compare quotes, or, indeed, if you’re taking out cover for the first time.

It only takes a few minutes using online comparison tools, or by calling a broker.

  • Combined policies

Property cover consists of two elements; one to cover the structure of the property you own, known as buildings insurance, and the other for the contents such as curtains, sofas, your possessions and white goods.

You can buy these elements separately from different providers, but you’ll almost always find it’s cheaper to buy them together from the same insurer.

  • Don’t over-insure yourself

Think carefully about what insurance you need. If you live alone, or your children have flown the nest, you might not want to bother with accidental damage, or emergency cover, for example.

If such elements are included in your policy as standard, perhaps look for more basic cover as it could cost less.

And don’t over-estimate how much it would cost to re-build your home, or how much your contents are worth. However, at the same time, make sure you don’t under-insure yourself as you could be left out of pocket in the event of a claim.

  • Make your home more secure

The general rule is that the more secure your home, the greater the discount an insurer will offer you.

If you have particularly good locks which meet certain nationally recognised standards, or high quality burglar alarms and electronic gates, insurers recognise your home is going to be harder to break in to and less appealing to burglars and offer you lower premiums

  • Pay in one go

Most insurers give you the option of either spreading out payments for your home insurance over a 12 month period, or all in one go.

Choosing to pay up front is nearly always cheaper than spreading the payments out

  • What excess are you willing to pay?

If you think it’s highly unlikely you will ever have to make a claim (perhaps because you take great care with your property and possessions), you might want to think about increasing your policy excess.

The excess is the first part of any claim which the insured has to pay and is standard on all policies. The insurer will offer you the chance to set this yourself, and, generally, the higher the excess you choose, the lower your premiums.

  • Don’t lose your no claims bonus

Insurers offer considerable discounts to those who haven’t recently claimed on any home cover they may have had.

If you look after your home with regular maintenance and checks, and are careful with your possessions, you’re less likely to have to make a claim and therefore lose your no claims bonus.

 

Policy Expert

If your home is your haven, you’ll want it to have the best protection. Compare quotes from our range of handpicked insurers and tailor a policy to suit you. For more information speak to one of our experts on 0203 014 9300 or email  ask@policyexpert.co.uk

The views expressed here are solely those of the author and do not necessarily reflect the views of Policy Expert.