For the majority of us our houses are the single most expensive thing that we will ever buy. It therefore makes sense – and indeed it is mandatory with most mortgage providers in the UK – to have a comprehensive home insurance policy. And whilst home insurance isn’t something that you should scrimp on, there are ways to cut the costs of your policy without compromising on the level of cover.
Shop Around When It Comes to Renewal Time
Don’t just accept the renewal quote from your current provider as they very rarely reward customer loyalty. Instead, insurers try and tempt new customers with big discounts and other incentives such as cash back, whereas existing customers may find their premiums creeping up. Shop around by using comparison sites such as www.uswitch.com – the chances are you’ll find a much better deal elsewhere. If you would prefer to remain with your existing provider giving them a call armed with less expensive renewal quotes can be very effective in getting them to price match their competitors.
Check What Discounts You Could Get
Some insurers offer discounts if you have smoke detectors fitted. A smoke detector costs around £5.00 but could potentially save you five times that each year. Also check if your house is in a recognised Neighbourhood Watch Area as this will also get a few pounds shaved off your premium. Don’t forget to tell your insurer at renewal time if you have not made any claims as this will get you a no claims discount from many companies.
You could potentially make great savings if use the same company for all your insurance policies – or at least your home insurance AND your contents insurance. Insurance brokers don’t like losing customers – less so when they hold multiple policies – they will be more than willing to negotiate the price of your cover. And don’t forget to ask for renewal discounts if you’re staying with the same insurer, especially if you haven’t made any claims.
Increase Your Excess and Don’t Make Small Claims
You could substantially reduce your premium by increasing your excess. Also don’t make claims for small amounts – up to around £500 – as this will pretty much guarantee at renewal time you will be given a much higher quote. Some insurers will also refuse to you insure you if you have made a number of small claims in one year. At the very least you will lose your no claims bonus which can be worth up to 60% off your premium if you haven’t made any claims for several years. Also, setting a high excess level when you apply will bring your insurance premium down substantially.