Home Insurance Guide Part 7: Tips for reducing your premiums

It goes without saying that shopping around for cheaper home insurance is the best way to reduce your premiums. By using our handy comparison service – you could be amazed at the savings! Before you start though, take a look at our quick checklist to help you make savings:

Don’t pay for insurance you don’t need: Estimating the rebuild cost and the value of your home contents could result in you being over-insured. Remember that your rebuild cost is normally lower than the market value of the property. Many people don’t bother to re-calculate the cost of their possessions when the time comes to renew, which could mean they're paying over the odds for a large amount of cover they don’t need. Don’t end up being one of them – do your homework so you don’t waste money.

Don’t ignore the excess: The excess is an amount payable by you as the policyholder in the event of a claim. You’ll normally qualify for lower premiums if you choose to pay a higher excess,  but this means you will have to bear some of the cost and for smaller claims sometimes it’s simply not worth it.  Consider how much it would cost you to claim and assess whether you could comfortably increase the excess amount to make savings.

Understand how underwriters work: Many insurance providers use their own specific model for assessing risk and what one insurer identifies as a liability, another may not. This is why there is such a large fluctuation in quotes returned via comparison web sites. Many providers cater specifically for particular market segments – students or the elderly for example – so other providers may quote significantly higher prices for these.

Increase the security of your home:  Installing burglar alarms, security lighting, CCTV, smoke and carbon monoxide detectors, and insurance approved window and door locks can contribute to obtaining a lower premium. Generally, insurers are happier if you are security-conscious as it reduces the risk of a future claim.

Pay annually instead of monthly: To avoid being hit with unnecessary interest charges. Although it can make life easier financially, try to pay your insurance in one lump sum. If you can’t manage this, look for providers that don’t charge extra for the privilege of spreading the cost. Always check the provider’s APR and don’t get stung with excessive fees.

Combine your buildings and contents insurance: Taking both policies out together could secure you a significant discount. That said, get quotes for separate cover as well and compare the two.

Read our home insurance articles and guides for more great topics or get a home insurance quote.