Save on Home Insurance
11 Ways to Save Money On Your Home Insurance
Now that you know the basics of your home insurance policy, here are 11 ways you can pay less. In many cases, you can get the same level of cover for fewer pounds.
- One Insurer, Multiple Policies -- Do you have an car/ vehicle insurance policy? If so, is it with the same insurance company that provides your home insurance? If the answer’s no, you may be paying too much -- for both policies. There are a few insurance company that sells home insurance wants its policyholders to also buy car or vehicle insurance from them. So, they offer “multi-policy discounts” to entice you. Usually, these discounts can be up to 10% -- and some insurers apply the discounts to both the vehicle and the homeowners policy.
- Increase Your Excess -- The excess is the amount you will in the event of a claim, your insurers pay for everything over the value of the excess. For example, if you have a £100 excess and you file a claim for £1,000 in damage to your home, you pay the first £100 and your insurer pays the balance, £750. The higher your excess is, the more discount the insurer will allow off the premium you pay for your policy. Of course, you risk more out-of-pocket if you have a claim, but you save on your premium each and every year. So you gamble paying the excess if a claim happens against the savings in your premium.
- New Is Better -- Insurers really like newer homes. That’s because it’s less likely something will go wrong with the electrical, heating and plumbing systems. In addition, the structure itself is in better condition, made of fire resistant materials. Insurers offer discounts of as much as 8% to 15% if your residence is new.
- Location, Location, Location -- Where do you live? If your neighbourhood has a higher incidents of theft claims in that area, and the insurers experience of writing business in that location is not good then your premium for your house will reflect the insurers experience in that area. Certain areas of the UK lend themselves to exposure due to natural events, like storms, water damage and flooding. So where you choose to live is a factor which will also dictate the premium charged by insurers.
- Insure the rebuild value of the House, do not include the land value -- Nobody is going to steal your land. do not include the value of the land in the rebuild value of the property. What you do need to consider is that there may be structures on your land which you may be responsible for. Roads, paths, bridges, fencing etc, you would need to show the value of these separately from the building value. Our policies also include Land Liability cover, for injuries and damage caused by someone being on your land for a lawful reason. Like the post man, newspaper boy, delivery driver and friends and neighbours who may visit you. If they trip or fall and injure themselves on your property or the land that is within the perimiter of your home you will be liable, so we cover that as well.
- Don’t Insure What You Don’t Have – Your home policy includes an automatic protection limit for your personal property. This amount IS adjustable. If you don’t need all that protection you can lower it to save some money. But be careful. You may also need more. Your agent should help you with a quick personal property calculation. Also, pay particular attention to items subject to special limits (as described above), items such as jewellery, sports equipment, personal possession and computer equipment.
- Being Safe Pays You Back -- Smoke detectors, burglar alarms and mortice dead locks are usually worth discounts on your home policy. You may get even bigger discounts, 15% to 20%, if you install a sophisticated alarm system that rings at the police station or a security company. However, not all of these systems qualify for discounts with all insurers. Before you install one, check with your insurer to find out what type of system qualifies for a discount and how much you would save on your premium if you installed the system.
- Where There’s Smoke . . . -- There’s fire. Smoking (unattended cigarette butts, etc.) produces more than 3,000 residential fires in this country each year. That’s why some insurers have discounts if all the residents in a home are nonsmokers.
- Don’t Jump Around -- If you've been with an insurer for a while and you like that insurer, stay put. Some insurance companies automatically have discounts for policyholders who have been with the companies for a certain number of years. Just like your car most insurers now provide a No Claims Bonus discount for not having a claim on your policy.
- Monitor Your Automatic Inflation Adjustment – Virtually every home policy includes an Index linking calculation applied annually to the policy. This means the company automatically increases your house building & contents Limit every year in line with inflation. The idea is to keep up with the rising costs of rebuilding your home and make sure your insurance will completely rebuild your home. That’s a good thing! But over time this automatic inflation adjustment can get out of whack with reality. If you think your House rebuilding value is too high, ask us to review this for your. You may be able to lower your costs while still being fully protected.
- Good Credit = Lower Rates – Most companies these days use your credit history as part of their pricing structure. People with better credit will pay less for their insurance in most cases. So, not only is improving your credit rating a good idea by itself, it may also reduce the cost of your insurance.