Home insurance is a very competitive business, but many people still find they need to pay more each year to protect their home and valuables. Staying loyal to your existing home insurance provider rarely offers any benefits. There are many simple steps you can take to find cheaper home insurance, and the following seven ideas could save you up to fifty percent off your premiums.
Shop around every year
Loyalty rarely pays in insurance, and new customers are often quoted lower premiums than existing ones. The home insurance market is changing all the time, and new companies are keen to pick up a share of the premiums. Never accept the renewal terms on your household insurance, and take the time to shop around at every renewal. Online comparison sites make it easy to obtain hundreds of quotations in a matter of minutes.
It's worth checking two or three comparison services for the best home insurance deals, as they don't all compare the same insurance providers. Check that you are being offered quotations on the same basis each time, as prices may vary due to differences in cover. Some companies choose not to take part in comparison services, so it's worth approaching on a direct basis. Aviva and Direct Line are very competitive home insurance providers, and you won't find their products on comparison sites.
Don't pay for cover you don't need
Paying for cover you don't need is a common mistake in arranging home insurance. For buildings insurance, your home should be insured for the cost to re-build the property. The market value of most properties is higher than the re-building cost, so make sure you are insuring on the correct basis. Many people also over-insure their home contents and pay more for insurance than they need to as a result. Calculate the value to replace your home contents and personal possessions to ensure you are insured for the correct level.
Insurance for items used away from the home can push the cost of a policy up, so consider carefully if you need this. Items such as expensive cameras and jewellery may have to be specified on a policy. Some home insurance policies will cover mobile phones, but you may already be paying for this cover through your mobile phone contract.
Increase your policy excess
Home insurance policies have a standard excess, but you can choose to increase this for a premium reduction. A hundred pounds is a typical excess level on a home insurance policy. Always remember that you will need to pay the amount of the excess if you need to make a claim, so don't choose a level which makes the policy worthless.
Fit an intruder alarm
Homes with intruder alarms often attract premium discounts from insurance companies. Fitting an intruder alarm is a sensible way to improve home security, and the costs can soon be recovered from reductions in home insurance premiums. An insurance company will usually apply special terms about maintaining and setting intruder alarms, so make sure you are able to comply with these.
Improve home security
Fitting approved door and window locks can attract discounts of around ten percent on some home insurance policies. Improving home security is one of the easiest ways to make your property a more attractive risk to insurance companies.
Only submit a claim when you need to
Insurance should be used to pay for repairs and replacement in an emergency. Submitting multiple claims for stains to carpets and broken windows will usually result in higher premiums, and may mean you have difficulty arranging cover in the future. Insurance companies offer preferential rates to people who have a proven track record of not submitting claims.
Pay annually
Monthly premium instalments are a convenient way to spread the cost of home insurance, but it's generally more expensive to pay this way. Paying an annual premium could save you around ten to fifteen percent of the cost of home insurance.
Shop around every year
Loyalty rarely pays in insurance, and new customers are often quoted lower premiums than existing ones. The home insurance market is changing all the time, and new companies are keen to pick up a share of the premiums. Never accept the renewal terms on your household insurance, and take the time to shop around at every renewal. Online comparison sites make it easy to obtain hundreds of quotations in a matter of minutes.
It's worth checking two or three comparison services for the best home insurance deals, as they don't all compare the same insurance providers. Check that you are being offered quotations on the same basis each time, as prices may vary due to differences in cover. Some companies choose not to take part in comparison services, so it's worth approaching on a direct basis. Aviva and Direct Line are very competitive home insurance providers, and you won't find their products on comparison sites.
Don't pay for cover you don't need
Paying for cover you don't need is a common mistake in arranging home insurance. For buildings insurance, your home should be insured for the cost to re-build the property. The market value of most properties is higher than the re-building cost, so make sure you are insuring on the correct basis. Many people also over-insure their home contents and pay more for insurance than they need to as a result. Calculate the value to replace your home contents and personal possessions to ensure you are insured for the correct level.
Insurance for items used away from the home can push the cost of a policy up, so consider carefully if you need this. Items such as expensive cameras and jewellery may have to be specified on a policy. Some home insurance policies will cover mobile phones, but you may already be paying for this cover through your mobile phone contract.
Increase your policy excess
Home insurance policies have a standard excess, but you can choose to increase this for a premium reduction. A hundred pounds is a typical excess level on a home insurance policy. Always remember that you will need to pay the amount of the excess if you need to make a claim, so don't choose a level which makes the policy worthless.
Fit an intruder alarm
Homes with intruder alarms often attract premium discounts from insurance companies. Fitting an intruder alarm is a sensible way to improve home security, and the costs can soon be recovered from reductions in home insurance premiums. An insurance company will usually apply special terms about maintaining and setting intruder alarms, so make sure you are able to comply with these.
Improve home security
Fitting approved door and window locks can attract discounts of around ten percent on some home insurance policies. Improving home security is one of the easiest ways to make your property a more attractive risk to insurance companies.
Only submit a claim when you need to
Insurance should be used to pay for repairs and replacement in an emergency. Submitting multiple claims for stains to carpets and broken windows will usually result in higher premiums, and may mean you have difficulty arranging cover in the future. Insurance companies offer preferential rates to people who have a proven track record of not submitting claims.
Pay annually
Monthly premium instalments are a convenient way to spread the cost of home insurance, but it's generally more expensive to pay this way. Paying an annual premium could save you around ten to fifteen percent of the cost of home insurance.
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