No one likes paying for home insurance, but it's a necessary evil for most of us. That doesn't mean you have to pay through the nose, though - try these 8 simple tips for cheaper home insurance and see how much you could lower your premiums.
- Shop
By comparing the prices of several insurance companies, you will probably be able to reduce your premiums by a substantial amount. It may seem obvious, but research has shown that a surprisingly high proportion of people simply renew their current policy or only get one or two quotes. Many insurance websites automatically compare dozens of policies for you, making this one of the easiest ways to lower your insurance bill.
- Buy online
If you take out your policy online, you can often get up to 20% off normal prices, as administration costs are lower and the savings can be passed on to you.
- Combine your building and content policies
Many insurers will give you a discount if you buy both types of home insurance with them, and it's usually cheaper than getting both types of policies from different companies.
- Pay in advance
Although most insurers allow you to pay your premium in monthly installments, many will charge interest for this. If you can afford to pay a full year's premium up front, it will cost you less in the long run.
- Do not claim small sums
Making many small claims can increase your insurance costs because your insurer may consider you a higher risk and increase your premiums. You will also lose any no-claims discount on your policy. Of course, you have the right to claim everything your policy covers, but ask yourself if making a small claim is really worth it and the possible future costs.
- Zeal
This is related to the last point. Insurance policies feature what is called a “deductible”, which basically means that the policy will not pay claims below a certain value. On some policies, if you choose to raise your deductible to a higher level, then your premiums will be lower.
- Increase your home security
Improving your home's security with better door locks, window locks, outdoor lighting, and alarm systems can all lead to lower premiums. Ask your insurer what you could do to get additional discounts.
- Reduce your coverage
Many policies include benefits you may not need, such as coverage for personal effects while traveling or “free” legal advice. Look at your policy and see which parts of it you really need - by reducing your coverage you may be able to lower your premium.
